Chinese Companies Eye U.S. Mobile Internet Market
SAN FRANCISCO, Oct. 25, 2013 /PRNewswire/ — “Chinese enterprises have expressed great interest in the mobile Internet market of the United States.” This was a view shared by many participants attending the Global Mobile Internet Conference. Held on October 23 in Silicon Valley, the influential conference on mobile Internet trained the spotlight on the Chinese companies. GPC analysts said, in 2014, Chinese enterprises will experience an unprecedented growth with regards to the U.S. mobile internet market growth potential.
Apart from Line CEO Akira Morikawa, PopCap Games CEO Dave Roberts, this year’s conference also attracted media attention with lectures given by Xiaomi CEO Lei Jun, Perfect World CEO Xiao Hong and Tencent President Liu Chiping. American media observers say these Chinese firms are now eyeing the homeland of Apple after succeeding in the world’s largest mobile Internet market .
According to a report by market researcher Chetan Sharma Consulting, the revenue of mobile data service in the U.S. was likely to reach 90 billion U.S. dollars. Data shows the country now has 240 million mobile users, of whom 145 million have smartphones. The second quarter of this year continued to witness surging sales of smartphones in the States, which accounted for about 87 percent of the sales of all mobile devices. Great potential has been expected from the U.S. mobile Internet market, which is among world’s most developed.
China’s Internet and online gaming companies have maintained close attentions to the American market. Chinese Game developer Perfect World has sold its products to over 100 countries and regions and set up a wholly-owned subsidiary in North America. Its CEO Xiao Hong told media that the company’s strategy was to set up independent subsidiaries in markets that it considered were of special significance. The company’s acquisition of American game studios are also a success. Hong Kong Commercial Daily reported that “after acquiring Runic Games and Cryptic Studios over the past few years, the company, which is a leading games exporter in China, will focus its future purchase on the mobile gaming sector.”
After its mobile game “Return of the Condor Heroes” made a great hit, Perfect World is confident in its global development. Speaking on Macworld Asia, Senior Vice President of Perfect World Xu Yiran said the company would increase its investments in the world’s small and medium-sized studios developing PC games, console games and video games, while the focus was on mobile games. Its PWIN program is believed to be the first global gaming investment program launched by a Chinese game developer.
Chinese Internet firm Tencent is also eyeing the American market. The company now wishes its WeChat service can catapult it into a global Internet giant. The company’s purchase of Los Angeles-based Riot Games is considered its most successful overseas acquisition. Riot Games is the developer of League of Legends, whose global popularity can even rival Blizzard’s DOTA 2.
Another prominent Chinese company is Xiaomi, whose miraculous growth has shocked the world. Even more shocking than the smartphone maker’s assessment value of 10 billion yuan after its founding is its hiring of former Google VP for Android, a move that shows its ambition on the global market.
The conference was also attended by other Chinese mobile Internet entrepreneurs, including Yu Yongfu, founder of UCWEB. GPC Analysts say the rise of mobile Internet has opened more opportunities for Chinese enterprises to go global. While in the Internet sector, China has long lagged behind the Western world due to its late introduction of the technology and poor infrastructure building, Chinese companies and their Western peers, however, started at the same line in the mobile Internet sector. The popularization of 3G network and the huge number of domestic users have given Chinese companies more opportunities to to march into the global market.