10. What we do
– Worked with mobile SNS in Japan in 2003
• With avatars, virtual goods and GPS!
– Advise leading companies worldwide
• Microsoft, Adidas (E-commerce / Digital strategy)
• IMVU (US | 3D chat / Virtual World)
• MIH (China/S.Africa | Largest shareholder of Tencent)
– Published reports
• Inside Cyworld
• Inside Tencent (Clients include Harvard Business School)
• Inside Taoabao (Upcoming)
15. Digital Population
Country USA China Japan Korea
Population 300 mln 1,300 mln 130 mln 50 mln
Internet users 225 mln 340 mln 100 mln 35 mln
Mobile users 260 mln 650 mln 100 mln 45 mln
1/5 1,680 mln
1/2 Total 475 mln
1/3 785 mln
16. IT Infrastructure
100%
Avg. 7 Mbps
80%
Avg. 15 Mbps
60%
3G users
40% C
hi
n
20% a Avg. 4 Mbps
www.plus8star.com
0%
0% 20% 40% 60% 80%
% of Internet connections measured above 5Mbps
(Source: Akamai, 4Q08)
22. THE iPhone
• Sales
– 5.2M in 2Q09
– 22M iPhone users (+16M Touch)
• Applications
– 65,000 applications
– 1.5B application downloads
• Myths?
Source & Recommended Read: Strand Consult - The Moment of Truth, a Portrait of the iPhone
23. Global Market
• Mobile Services Market in 2008
– Total 8.6 billion USD
– Mobile games 3 billion USD
– Apple 150 million USD! (=1.7%)
• Handset Market
– Total 250 million / quarter
– Apple 5.2 million (=2%)
Source & Recommended Read: Strand Consult - The Moment of Truth, a Portrait of the iPhone
26. The iPhone Effect
• Application stores
– App stores are not new
• Touch screen
– Touch screen is not new
• Developers make money?
– Not so sure
Source & Recommended Read: Strand Consult - The Moment of Truth, a Portrait of the iPhone
27. Realities
• Mobile broadband >> iPhone
• Free apps are cannibalizing revenues
– And driving iPhone sales.
Source & Recommended Read: Strand Consult - The Moment of Truth, a Portrait of the iPhone
30. Beyond Voice & Beyond Telecom
3G Mobile TV NFC
Flat-rate Data Data ARPU Non-SMS Share
31. In addition
• Business models
– Micro-payments since 1999 (“i-mode”)
– “App store” since 2001
• Content
– Mobile music, mobile ads, mobile commerce…
– Financial services by mobile carriers
• LTE at 300Mbps starts next year!
63. Key market figures
• Mobile and Internet users growing fast
800
700 Mobile users | 673 million
600
million
500
400 Internet users | 338 million
300
Fixed-line subs | 320 million
200
100 Broadband subs | 90 million
0
Sources: MIITT, CNNIC, +8*
64. High Growth Potential
60
Penetration rate %
50 Mobile | 50%
40
30 Internet | 25%
20 Fixed-line | 24%
10
0
Sources: MIITT, CNNIC, +8*
65. Three operators
• China Mobile: the mobile leader
– GSM + TD-SCDMA
• China Unicom: the balanced operator
– GSM + WCDMA
• China Telecom: the broadband leader
– CDMA1X + CDMA2000
Mobile Fixed-line Broadband
Sources: +8*
66. Huge market, but low ARPU
ARPU (RMB)
1 USD = 6.8 RMB
10 RMB = 1,750 KRW
80 75
70 63.6
60
50 41.7
40
30
20
10
0
China Unicom China Mobile China Telecom
Sources: Company Reports, 1H2009
67. 3G started this year
WCDMA TD-SCDMA CDMA 2000
0.1 mln 1 mln 1.1 mln
• Started late • Largely expected by the • Better subsidies than
• Waiting for iPhone in Q4 government China Unicom
• Big issues on handsets • Better handset quality
than China Mobile
68. China Mobile’s Service Strategy
Fetion - IM 12580 – Voice Search Mobile Newspapers 12530 - Mobile Music
Mobile Game Streaming Mobile TV 139 - Mailbox PIM - Telephone Book Backup
Source: China Mobile
69. China Mobile’s Service Strategy
37M active users >15M USD/month
20M requests / 1M songs
147M registered #1 newspaper in
month 85M members
Growing fast China! (23M users)
Fetion - IM 12580 – Voice Search Mobile Newspapers 12530 - Mobile Music
Mobile Game Streaming Mobile TV 139 - Mailbox PIM - Telephone Book Backup
4M active users
6M USD / month
20M registered
Source: China Mobile
70. Popular Services
Overview
Gaming • From single player game to MMO.
• Emerging sector
Music • Mature market thanks to Ring Back Tone business
• Strong revenue maker
LBS • GPS getting popular
• Mobile LBS early stage
Portal • Getting mature (content and user base)
• Web companies and pure mobile players
Browsing • Getting mature (user experience, user base)
SNS • Getting mature (user experience, user base)
• Both pure mobile SNS player and mobile extension of PC-based SNS
TV • Emerging market
• Both broadcasting and streaming
• Lack of business model
• Interesting technologies enabling streaming on 2.5G
71. Tencent / QQ case
Mobile QQ client
• Tencent integrates various services
– #1 online community in China, Chat room
leveraging IM
Game
– 400 mln active accounts WAP Portal
– 1 bln USD revenue in 2008
• Mobile extension of QQ: Info: finance, Music
book, news player
20% of revenue
– WAP, mobile client, SMS
– PC-Mobile synchronization
E-mail Movie
– Good multimedia experience
in 2.5G network
Qzone (SNS)
73. Tencent / QQ case
Mobile search: Soso Mobile browsing Mobile music Mobile QQ mini player
Mobile Qzone (SNS) Mobile email Mobile game Mobile video
74. Learn from the best!
“Inside Tencent” Report
2009 Edition
Detailed Analysis, 20 Interviews, 280+ pages
75. Handset Market size
Nokia 38.9%
• 160 million mobiles
Top 3 for years
sold in 2008 Samsung 18.6%
66% of the market
– Another 50 mln Motorola 8.8%
phones sold in grey K-Touch 8.1%
market (not
Lenovo 3.9%
accounted for)
Sony-Ericsson 3%
Jinli 2.5%
LG 2.3%
Konka 2.2%
Amoi 2.1%
Bird 1.5%
Changhong 1%
Haier 0.9%
Others 6.3%
76. Handset Market size: MTK
Nokia 38.9%
• 160 million mobiles
sold in 2008 Samsung 18.6%
– Another 50 mln Motorola 8.8%
phones sold in grey K-Touch 8.1%
market (not
Lenovo 3.9%
accounted for)
Sony-Ericsson 3%
• Note: MTK phones Jinli 2.5%
– All domestic makers LG 2.3%
have migrated to Konka 2.2%
MTK
Amoi 2.1%
Bird 1.5%
Changhong 1%
Haier 0.9%
Others 6.3% Sources: Analysys International, ZOL
77. “We make anything you can imagine”
Cigarette case shaped
Barbie dressing case phone
PSP shaped, popular
games preinstalled
Car shaped
Solar power
Watch phone Super lens attachable rechargeable handset
78. More Creativity With MTK
366 days stand-by, dual- Dark light for money
SIM, super powerful battery authentication
Big thunder phone
Spider-Man design
79. Market Impact
• Foreign brands threatened by MTK phones
– Feature phones for <2,000 RMB (300 USD).
– Nokia’s China sales down 30% in 2008.
• Key results
– 90% of China’s mobile phone chipset market.
– 160 million chipsets shipped in 2007.
– 95% orders from China customers.
80. From Shanzhaiji to Shanzhai culture
iPhone
Manufacturer: Apple
One SIM card
Price: >4,000 RMB
iOrange: Fake iPhone
Manufacturer: iOrange
Made on MTK platform
Dual-SIM card
Price: 900 RMB
88. Contacts
www.plus8star.com
benjamin@plus8star.com
+81 | Japan
benjamin0123 +82 | Korea
http://twitter.com/plus8star +86 | China
Telecom & Internet
www.linkedin.com/in/benjaminjoffe
+ Added Value
www.slideshare.net/plus8star * High quality