China becomes world’s leading source of app revenue

China Global Television Network (CGTN) – With the smartphone user base long surpassing half its population, China is becoming a big global app revenue generator.

By 2016, China has generated almost a third of the global app revenue and has contributed up to half of the iOS App Store’s annual revenue growth.

In figures, Chinese app developers raked in the past 12 months a staggering 12 billion U.S. dollars, according to data-analysing firm NewZoo.

Thanks to its massive smartphone user base and ever-improving hardware, China’s app downloads were up 15 percent in 2016 and its app revenue amount went up another 40 percent, according to app intelligence first App Annie.

But the government is behind the scenes for the success of app developers in China.

“I think the government is trying to help a lot for the start-ups and entrepreneurs to succeed. The key is to have the right business model,” said Dai Bin, director of App Annie’s China office.

The increasingly large base of Chinese app users is in turn offering international developers increasing opportunities.

“If you are an international App and you want to come to the China market, you have to develop a totally different SDK. You have to find those unique edges that nobody else has thought about,” said Elaine Wang, general manager of Tencent Westart.

A video enhancement app has just done that to become a success of overnight. Less than a year into usage, the video enhancement app Vue has already acquired more than 10 million users worldwide.

Being voted a top app on the Apple app store in South Korea, the Chinese mainland and Taiwan region, the video enhancement app has encountered few difficulties in going global thanks to its universal usage.

“The trend is the media type. We are from the text, pictures, voice and now we’re going to videos, maybe the AR or VR. So I think our app is just on the trend,” said Kuang Fei, co-founder of Vue.