China Mobile Internet Reaches Low End of the User Spectrum – Baidu Report

China Mobile Internet Penetrates to Low End UsersChinese Internet Giant, Baidu published its Quarterly Report of Mobile Internet User Trends on Nov. 27. Here are some Ground Breaking Facts on the state of Mobile Internet in China.

Mobile Internet penetrates to lower-end users and is becoming more independent from PC Internet. Retention rate and usage of long-tail apps declined. China’s daily active Android user volume exceeded 270 mn, up 13% QoQ. Among them – Users in 3rd/4th-tier city and countryside account for 45% of the total and Migrant workers and users from countryside account for 60% of new user growth.

Popular Mobile Apps in China
Top 10 apps based on DAU are WeChat, Mobile QQ, Baidu mobile search app, Sogou Pinyin, Qzone, UC browser, Sina Weibo, 360 Security, Baidu Pinyin, and Mobile Taobao; SNS/communication, entertainment, search, mobile security, and games
are the top five app categories with high DAU. Based on the percentage of users who keep certain applications after 90 days of installation, lifestyle and games have the least user retention rates of 77% and 72%.

Mobile Internet, in terms of usage, time spent, app download, etc, will continue to concentrate to a fewer leading companies, such as Tencent, Baidu, and Alibaba; Mobile games would reach to the larger, low-end user base with characteristics such as low age, low income, and limited offline social circles.

Thus it is safe to conclude that mobile Internet is gradually penetrating into users with lower PC Internet penetration. Thus, distribution channels that depend on desktop computers might be weakened in future. Will the same happen in India where desktop Penetration is abysmally low compared to Mobiles ?