China Overtakes the US in iOS App Store Revenue (techcrunch.com)

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China Overtakes the US in iOS App Store Revenue (techcrunch.com)

Posted by msmash on Thursday October 20, 2016 @04:50AM from the leapfrog dept.

Sarah Perez, writing for TechCrunch: China has now overtaken the U.S. to become the largest market in the world for App Store revenue, according to a new report out this morning from app intelligence firm App Annie. The country earned over $1.7 billion in Q3 2016, which puts it ahead of the U.S. by over 15 percent. The U.S. had been the number one iOS market since 2010, the report notes. Today, Chinese consumers spend more than 5 times the amount they were spending compared with just two years prior. In addition, the report predicts that China will drive the largest absolute revenue growth for any country by 2020. The estimations are likely accurate -- App Annie had said at the beginning of the year that if China's rapid App Store revenue growth continued at the same pace, it would overtake the U.S. by year's end. And that has now occurred. This growth is largely being driven by games, and here, China's lead has also widened over the U.S. during the past quarter. Games drive 75 percent of App Store revenue, even though non-game apps make up the majority (75%) of those distributed in Apple's mobile marketplace.

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I wonder.. by Anonymous Coward · 2016-10-20 04:51 · Score: 1

Not how China will cope with being world number 1, but how America will deal with losing it.
1. Re:I wonder.. by Anonymous Coward · 2016-10-20 05:19 · Score: 0
  
  China number one... in malware infested apps. They can have the title, they earned it.
2. Re:I wonder.. by Anonymous Coward · 2016-10-20 05:27 · Score: 0
  
  i would expect that the revenue from the 'malware' wouldn't be counted here, just from the sale of the apps themselves... so it's basically just saying: a lot of fake and scammy apps come from china.
3. Re:I wonder.. by unixisc · 2016-10-20 05:28 · Score: 1
  
  Are there malware in Apple Store?
4. Re:I wonder.. by ranton · 2016-10-20 05:44 · Score: 1
  
  It is inevitable that as any country becomes "developed", the size of their market will be highly correlated to their population. My country (the US) likes to think its something intrinsic about our people or society which has made us #1, but by far the most important thing going for us is a large developed population under the control of a strong single government.
  It is no small feat to contain a 300+ million educated and developed population under a single unified society. Russia failed in the 80's, Europe is really struggling keeping the EU unified today, and the US went through a civil war and its hard to see a perfectly unified society in our current political climate. I believe China will have a harder time keeping control than any of my earlier examples, but even multiple fractured Chinese states would have significant economic power.
  Projecting out world politics 50+ years into the future is impossible, but ultimately the largest and most unified markets will win economically. The winner could be a unified and developed China, a merged Euro-American market, or any number of other options. This is why the protectionist trend in my country is so troubling, but luckily these factions are rarely successful politically.
  
  --
  -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
5. Re:I wonder.. by Anonymous Coward · 2016-10-20 06:14 · Score: 0
  
  Probably by voting for Hillary, continuing to rack up massive debt while stifling R&D and corporate investment.
  
  I read recently (probably right here) that China is now number 1 in AI research. So how many areas now is China the major R&D investor in now? How long until their total R&D passes the US total?
6. Re:I wonder.. by Anonymous Coward · 2016-10-20 06:25 · Score: 0
  
  You must be thinking of the fake Android stores.
  The Apple store is still curated.
7. Re:I wonder.. by macs4all · 2016-10-20 06:46 · Score: 0
  
  Are there malware in Apple Store?
  There have been a FEW isolated cases; but VERY few. And far-between.
  
  And they get removed almost as quickly as they appear in any case.
8. Re:I wonder.. by Anonymous Coward · 2016-10-20 11:08 · Score: 0
  
  Are there malware in Apple Store?
  Yes.
9. Re: I wonder.. by Anonymous Coward · 2016-10-20 12:49 · Score: 0
  
  China-europe market. The infrastructure is being physically laid.
How much was stolen Indian ATM purchases? by WillAffleckUW · 2016-10-20 04:55 · Score: 1

A record number of Indian debit cards were stolen and used in China and the US.
How many of these stolen Indian ATM purchases were in the iOS Apple store?
There's your missing money, and your bump.

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-- Tigger warning: This post may contain tiggers! --
1. Re:How much was stolen Indian ATM purchases? by Anonymous Coward · 2016-10-20 05:15 · Score: 0
  
  I was listening to some indian finance minister guy talk about indian black money the other day. Not black market but black money.
  This doesn't really have anything to do with your comment, but I wanted to share.
2. Re:How much was stolen Indian ATM purchases? by WillAffleckUW · 2016-10-20 05:18 · Score: 1
  
  Really. this article says it's 3.2 million debit cards. That adds up to a lot of iOS purchases at the same time as this spike.
  Coincidence?
  
  --
  -- Tigger warning: This post may contain tiggers! --
Who pays for apps? by HBI · 2016-10-20 04:56 · Score: 1

I bought one in my entire life. I steer around every one that costs money because there is insufficient value add to make it worthwhile. I'll most likely never buy one again.
Maybe those in China just haven't wised up yet.

--
HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
1. Re:Who pays for apps? by Anonymous Coward · 2016-10-20 05:03 · Score: 0
  
  I'm willing to buy apps. I've probably purchased 8 or 9. Generally it has been a "remove ads" purchase; other times it has been for a more advanced version than the free one. I don't see why people wouldn't purchase apps, although I agree that there isn't always a need to do so when a free app suffices. But supporting the developer by purchasing an ad-free version is something that helps me (no damn ads) and helps the developer to fund building more apps or maybe to pay rent.
2. Re:Who pays for apps? by Oswald+McWeany · 2016-10-20 05:04 · Score: 1
  
  Are you iOS or Android. Android has more free apps available, a larger % of iOS apps require money.
  I wonder how much this has to do with China using older apple devices whereas most people in the west have moved on to Android now. Is Apple still big in China?
  
  --
  "That's the way to do it" - Punch
3. Re:Who pays for apps? by Anonymous Coward · 2016-10-20 05:09 · Score: 0
  
  iPhone doesn't explode
4. Re:Who pays for apps? by fred6666 · 2016-10-20 05:10 · Score: 1
  
  Apple has never been big in China. Android always had a wide lead. Apple is relatively strong in the US and Austrlia (although Android still lead) but Android has about 80% market share worldwide and it's because of countries such as China, Brazil, and to a lesser extent the EU.
5. Re:Who pays for apps? by tlhIngan · 2016-10-20 05:30 · Score: 1
  
  Are you iOS or Android. Android has more free apps available, a larger % of iOS apps require money.
  I wonder how much this has to do with China using older apple devices whereas most people in the west have moved on to Android now. Is Apple still big in China?
  Too much piracy on Android to make money selling apps on the platform. It's why the vast majority of apps on Android are free and are loaded with ads that rape all your data from your phone.
  iOS users generally pay for apps, so developers get compensated directly by selling apps and thus have less need to sell ads. Plus the platform makes it harder to rape the user's data from it, so ads don't make as much money.
  And China generally gets the newer iPhones. Androids are a dime a dozen (the largest smartphone manufacturers in the world are in China, like Xiaomi and LeEco). China generally has a larger proportion of users with Androids than the US (US is generally 40-50% iOS, while China is probably closer to 10% or less. Worldwide, iOS is around 20%). The Chinese generally view the iPhone as a luxury device, so yes, Apple is still big.
  I suppose the bigger surprise is that someone managed to make a lot of money despite the Chinese typically pirating anything and everything, with pirate Android App Stores a particularly nasty source of Android malware. (Most Android malware spreads heavily amongst Chinese Android devices through sideloading pirated apps as well as the pirate app stores)
6. Re:Who pays for apps? by ilsaloving · 2016-10-20 05:40 · Score: 3, Insightful
  
  And that is why the app stores (both iOS and Android, but Android in particular) are flooded with shitty micropayment systems and/or crazy amounts of ads.
  There are lots of apps on the app store that I am very happy to give money for, because I want to provide direct support for those developers and keep them making more stuff.
  Stuff like 1password for password management, the Rooms game series, a very well done transit tracking app, etc.
  None of them are particularly expensive, and all are very worth while.
  The fact that iOS is doing so well compared to Android boils down to the fact that iOS users are more willing to open their wallets. That's why there are a lot more higher-quality apps. For example, both platforms include an official Scrabble game as a freebee, loading with an absurd amount of ads. My spouse and I were playing it on different devices, so I figured I'd just buy paid-for copies to get rid of the ads. I could do that in iOS, but when I looked on Google Play, they didn't even bother offering it.
  Decent software doesn't just materialize out of the sky. You gotta pay for it somehow.
  (All this of course, ignores companies like EA that have made a business model out of shitty software...)
7. Re:Who pays for apps? by unixisc · 2016-10-20 05:46 · Score: 1
  
  On my iPad, I've bought some games, like Monopoly, Clue, and a few others. Most of them were good and worth it. Only thing I wish - if I bought an app on an iPad or a iPhone, that it work on the other.
8. Re:Who pays for apps? by macs4all · 2016-10-20 06:48 · Score: 0
  
  Apple has never been big in China.
  ORLY? Then what's up with this article?
  
  Care to explain?
9. Re:Who pays for apps? by fred6666 · 2016-10-20 07:03 · Score: 1
  
  If you read my message you would have understand that I meant Android always had the lead in China. Oswald McWeany implied that China was more an iPhone country (unlike the rest of the world which is more Android) and that alone explained why China is now #1 in app store revenues
10. Re:Who pays for apps? by Anonymous Coward · 2016-10-21 05:42 · Score: 0
  
  WTF it doesn't???
  I thought you got to use apps across all your devices. I wouldn't know I use garbage android phones and chrome.
Not super surprising by HeckRuler · 2016-10-20 05:02 · Score: 1

Remember that the bulk of humanity resides in China and India. "The west" is a minority on planet Earth. And iPhone apps are a low cost thing. The smartphone itself is kinda expensive, but they're so useful that they're pretty ubiquitous, even in poorer locale. China's been "waking up", modernizing, constructing, and growing at breakneck rates for a couple decades now.
Also remember that if China and India start consuming at the rate that the median American does, global warming and climate change will go through the roof.
1. Re:Not super surprising by WillAffleckUW · 2016-10-20 05:19 · Score: 1
  
  Also remember that if China and India start consuming at the rate that the median American does, global warming and climate change will go through the roof.
  You used the word "if" incorrectly.
  You meant "when".
  
  --
  -- Tigger warning: This post may contain tiggers! --
2. Re:Not super surprising by Oswald+McWeany · 2016-10-20 05:31 · Score: 1
  
  Remember that the bulk of humanity resides in China and India.
  Actually, it's about 1/3rd of humanity lives in either China or India. Not quite the "bulk of humanity", although certainly more than lives in the "West".
  
  --
  "That's the way to do it" - Punch
3. Re:Not super surprising by Oswald+McWeany · 2016-10-20 05:34 · Score: 1
  
  And iPhone apps are a low cost thing. The smartphone itself is kinda expensive, but they're so useful that they're pretty ubiquitous, even in poorer locale.
  Being a poorer locale actually helps smart phones. In a lot of poorer countries people completely skip getting a computer in exchange they just get a smart phone. Smartphones are the primary computing device in poorer countries so they're more likely to buy apps that they can use on their phone than they are to buy a computer program.
  
  --
  "That's the way to do it" - Punch
4. Re:Not super surprising by fred6666 · 2016-10-20 05:35 · Score: 1
  
  Also remember that if China and India start consuming at the rate that the median American does, global warming and climate change will go through the roof.
  Which is why the US must act now to fight global warming.
5. Re:Not super surprising by ranton · 2016-10-20 05:54 · Score: 1
  
  Which is why the US must act now to fight global warming.
  Or more reasonably the US must accept that global warming will happen, and the focus needs to be on mitigating the damage not feebly trying to prevent it.
  
  --
  -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
6. Re:Not super surprising by fred6666 · 2016-10-20 06:06 · Score: 1
  
  You just made a fallacy. Global warming is not binary. A 3 warming is much worse than a 2 warming.
  And we must do both, reduce emissions and adapt to the warming.
7. Re:Not super surprising by angel'o'sphere · 2016-10-20 07:04 · Score: 1
  
  Also remember that if China and India start consuming at the rate that the median American does, global warming and climate change will go through the roof.
  
  That is bollocks. Consume is not causing climate change. CO2 does.
  It is easy to produce more consumables with out using more energy.
  It is also easy to produce more energy without producing CO2.
  Just because you still use the wrong form of energy production and a strange way of consuming (in the US) it does not mean that the rest of the world, especially the developing one, is evolving similar. China and India both are heavily investing into renewables btw. And no one there is trying to copy idiotic american lifestyles.
  
  --
  Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
8. Re:Not super surprising by ranton · 2016-10-20 07:25 · Score: 1
  
  You just made a fallacy. Global warming is not binary. A 3 warming is much worse than a 2 warming.
  And we must do both, reduce emissions and adapt to the warming.
  I agree, we should do both, although I feel a more accurate ratio would be 20 warming with little work on reducing emissions, and 18 warming with significant emission reduction by developed nations. We need to realize only about 15% of the world's population can be considered developed, and almost no matter what we do emissions will skyrocket as the other 85% catches up over the next 100 years. I hesitate to say reducing emissions in a significant way is hopeless, but that is nearly the case.
  
  --
  -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
9. Re:Not super surprising by fred6666 · 2016-10-20 08:00 · Score: 1
  
  It seems like the degree sign (Celcius) didn't pass. I meant 3C and 2C. A single Celcius makes a huge difference.
  Since developed countries created much of the current CO2, they must lead the effort. But as long as we pollute more per capita than poorer countries, we can't really blame them for not doing enough.
Numbers by poofmeisterp · 2016-10-20 05:12 · Score: 1

China Population (2013): 1.357 billion
U.S. Population (2014): 318.9 million
Head count over a billion more than U.S. Hmm. My question is why is the exceeding number so small!? I know it's still overall developing and all that, but still.
1. Re:Numbers by Jzanu · 2016-10-20 05:26 · Score: 1
  
  You're examining a derived figure for a restricted activity and comparing it as an indicator of economic welfare. Smart phones are luxury items with restricted distribution based on service. That is before the element of the restricted app market itself. The best app is for geolocated weather forecasts that farmers can use.
2. Re:Numbers by Oswald+McWeany · 2016-10-20 05:30 · Score: 1
  
  US GDP is higher though.
  
  --
  "That's the way to do it" - Punch
3. Re:Numbers by poofmeisterp · 2016-10-20 05:48 · Score: 1
  
  You're examining a derived figure for a restricted activity and comparing it as an indicator of economic welfare. Smart phones are luxury items with restricted distribution based on service. That is before the element of the restricted app market itself. The best app is for geolocated weather forecasts that farmers can use.
  I bow. You have a good point there.
  Oh, and no pun intended. :)
4. Re:Numbers by Anonymous Coward · 2016-10-20 06:34 · Score: 0
  
  But not for long.
  If the Poms had not done a Bexit, the EU would be the biggest economy if not already, very soon.
  China would over take both within the next 10 years (or less)
  The US would be the 3rd largest economy at that stage, and still falling.
  Automation is allowing countries to modernise more cheaply today than was previously possible, this modernisation improves their economic activity and allows their economy to grow.
  The US is a saturated economy, growth is limited
  Within 50 years its likely to be
  China
  EU
  India
  Brazil
  Indonesia
  USA
  UK
  Japan
  Russia (who could be higher if they get their shot sorted).
  Trade with China is what will fuel economic growth for the other Asian countries.
5. Re:Numbers by Solandri · 2016-10-20 07:13 · Score: 1
  
  China's GDP is about 2/3rds that of the U.S. So yes it is a bit surprising that iOS app store revenue is greater for China than for the U.S. My guess would be the later introduction of the iPhone and iPad into China means people there are still in the "stocking up on apps they want" stage, while Americans left that phase 4-5 years ago.
6. Re:Numbers by poofmeisterp · 2016-10-20 07:17 · Score: 1
  
  China's GDP is about 2/3rds that of the U.S. So yes it is a bit surprising that iOS app store revenue is greater for China than for the U.S. My guess would be the later introduction of the iPhone and iPad into China means people there are still in the "stocking up on apps they want" stage, while Americans left that phase 4-5 years ago.
  I've been educated. Thanks. Embarrassing.
7. Re:Numbers by Anonymous Coward · 2016-10-20 07:59 · Score: 0
  
  Until the peasantry in the Chinese countryside gets tired of the corruption and increasing inequality and demand a return to Maoism. The current party is nothing but an oligarchy.
8. Re:Numbers by AHuxley · 2016-10-20 13:27 · Score: 1
  
  Even a small amount of 1.357 billion is still a big number to be part of the merging middle class who want to be seen with only Apple or the next Apple like brand.
  They don't want a local brand. They don't want average MS or a low cost EU brand that positioned with ads to be sold in bulk to the working poor to make up profits.
  Some luxury devices are still allowed others attract unwanted questions and can be reported. That expensive foreign car might imply an extra cash flow and might not be worth been seen with. An above average German luxury car with below average styling could go more unnoticed given brand awareness.
  But the phone is still the luxury device to be seen with or allowed to be enjoyed without comment.
  The only question for China is it really worth NSA/GCHQ tracking its staff around sensitive sites thanks to been sold on the need for foreign designed luxury phone.
  
  --
  Domestic spying is now "Benign Information Gathering"
How many of those purchases were accidental? by Anonymous Coward · 2016-10-20 05:28 · Score: 0

In more developed countries there are strong consumer protection laws to help reverse accidental purchases. Knowing China and Inida, you're pretty much SOL if a toddler goes on a candy crush spree.
Quite the relief. by Gravis+Zero · 2016-10-20 06:42 · Score: 1

Finally, China has surpassed the US at something and I'm not ashamed to at admit it! ;)

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Anons need not reply. Questions end with a question mark.
Less PC's, more phones by Tablizer · 2016-10-20 06:44 · Score: 1

Chinese are heavier users of smartphones because there are relatively fewer desktop computers there. For whatever reason, perhaps the cost, or space, they use smartphones instead of desktops.

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Table-ized A.I.
This is Amazing! by macs4all · 2016-10-20 06:51 · Score: 1

Especially since we are talking about China, where actually paying for software is almost a crime!

I guess this proves that Apple's App Store model really, really works. Because, if you can get the average Chinese person to pay for software, you have done something that pretty much no one else has been able to accomplish!
They have all the money by p51d007 · 2016-10-20 07:21 · Score: 1

People in the USA, for the most part, are living paycheck to paycheck, haven't had a raise in 12 years or more. Between the Bush economy and the Obama economy, which did nothing but print money to prop up the stock market artificially, no one had any money to spend. Oh, there are spots in some areas, but for the most part, everyone is tapped out. Once the China market dries up, and it has started, the entire world will be in for another "reset". Will make the 29 crash look like chicken feed!
Just the beginning by rockabilly · 2016-10-20 07:26 · Score: 1

China will be overtaking the USA in a lot of things fairly soon - not just silly apps.
shilly shill shill by Anonymous Coward · 2016-10-20 07:54 · Score: 0

thx for the assurance shill
1. Re:shilly shill shill by Anonymous Coward · 2016-10-20 07:58 · Score: 0
  
  thx for the assurance shill
  Not shilling. Just reporting well-known facts. Sorry you can't take it, Hater.
  If you think you can prove me wrong, I'll be right here. Waiting...
shilly shill shill by Anonymous Coward · 2016-10-20 19:43 · Score: 0

shut up... shilly shill shill sheep