CCID Consulting: China’s Mobile Internet Industry to See Rapid Growth & Overall Consolidation

A Review & Outlook on China's Mobile Internet Industry

BEIJING--()--After years of development, China’s mobile Internet industry has entered a period of rapid growth and overall consolidation.

I. Overview of China’s Mobile Internet Industry

By the end of 2010, China's mobile Internet industry was worth RMB 293.69 billion, and the figure for 2011 is expected to top RMB 400 billion.

The year 2011 witnessed an emerging trend of consolidation in China’s mobile Internet industry. In August, Google took over Motorola Mobile; in December, Nokia announced it would abandon Symbian OS. All these incidents signified that the mobile Internet industry has entered a period of overall consolidation.

In addition, mobile Internet has been included in the strategic emerging industries of China, which gives a strong driving force for its rapid growth and overall consolidation.

II. A Nationwide Mobile Internet Industry Taking Shape in 2011

Geographic pattern: The key regions are located in the south, the north and the west. China's mobile Internet industry is largely clustered in four regions: the Pearl River Delta in the south, the Circum-Bohai Sea in the north, the Yangtze River Delta in the east and the West Triangle centered on Chengdu, Chongqing and Xi'an, which altogether contribute more than 90% of the industry’s total output.

Structural pattern: The industry has experienced a rapid growth, with mobile terminals in the dominant position. In July 2011, there were 318 million mobile Internet users in China. In 2010, the country’s output value of mobile terminals came to RMB 215.57 billion. While the mobile terminal industry remained in the dominant position in 2011, the mobile software and application industries also experienced a noticeable growth.

Investment pattern: Enterprise investment is active, while direct government investment is rarely seen. In China, state-owned enterprises and private enterprises are the major investors of the mobile Internet industry, while the government only funds a number of state projects initiated by the Ministry of Science and Technology. In the first half of 2011 alone, there were as many as 31 disclosed investment deals in mobile Internet, among which 24 had a total disclosed value of $318 million.

III. Four Noteworthy Trends of Mobile Internet in 2012

Supporting technology: Bandwidth of telecommunications networks determines the carrying capacity of the mobile Internet. By September 2011, 237 operators had launched the LTE service, covering commercial use, trial use, testing and research. In the future, TD-LTE will reach 2.7 billion people in China, India and Japan. The broadband telecommunications networks will provide bandwidth guarantee for a wide range of mobile Internet software and applications.

Terminal technology: Innovative mobile smart terminals integrating mobile cloud services will be widely applied. In the future, the "cloud + client" model featuring "strong background" and "thin client" will become a key trend for the innovative mobile smart terminals.

OS: Smart terminal OS will become a crucial area in the mobile Internet industry. Google's Android and Apple's iOS have become two mainstream operating systems for mobile terminals. With the rise of the new-generation Web technology HTML5 and cloud computing technology, Web capabilities have expanded dramatically. How can controllable and proprietary mobile OS be developed? There is much to do to explore the development method and trend of OS.

Security issues: With the speeding popularization of mobile Internet applications, information security issues become conspicuous. As users use the mobile Internet on mobile devices, hackers have set eyes on the platform, and security has become a key topic. Mobile information security at user, network and national security levels is likely to draw great attention.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi’an, Wuhan and Nanjing with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China. With its powerful industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No. 1 consultancy for enterprise management, and the No. 1 brand for informatization consulting in China.

Contacts

CCID Consulting Co., Ltd.
Haiyu Wu, +86-10-8855-9080
wuhy@ccidconsulting.com
http://en.ccidconsulting.com

Contacts

CCID Consulting Co., Ltd.
Haiyu Wu, +86-10-8855-9080
wuhy@ccidconsulting.com
http://en.ccidconsulting.com