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Games Contribute 88% of China Mobile App Store Revenues

Tencent Tech, 4/10/13

At the 8th Global Mobile Game and Channels Conference held yesterday in Beijing, Hang Guoqiang, head of China Mobile's (NYSE: CHL; 0941.HK) mobile internet base, stated that 25% of all apps downloaded from the company's Mobile Market app store are game apps. However, 87.5% of total revenue earned by the app store is earned from game apps.

Hang said that the percentage of users who pay for mobile game apps is very high. For PC games, this rate is around 1-2%, but for mobile games, the rate is 7-30%. Also, the payment model in which mobile game fees are simply added to the user's phone bill is widely accepted, with 70% of mobile game players paying in this manner. In-app payment methods, such as charging for in-game props, for number of times played, or for a monthly package, have also become increasingly mainstream, and are now utilized by nearly 90% of the games in the Mobile Market app store. In-app payment will gradually replace the model of charging a download fee for game apps.

Keywords: business model China Mobile revenue wireless app store CHL 0941.HK Mobile Market Hang Guoqiang mobile gaming mobile application

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