Apple's iPhone App Store takes off in China
Despite a slow start in official handset sales, the iPhone has found success in China with customers flocking to the App Store, even with the device's lack of Wi-Fi.
Popular applications in China include a Chinese-to-English translator and dating software to find "soul mates," according to The Wall Street Journal. The early success of the App Store comes in spite of the cards being stacked against it: China Unicom was estimated to sell just 5,000 iPhones at launch, the hardware only offers 3G Internet connectivity, and App Store purchases require a credit card issued by a Chinese bank, which is not commonplace.
Among the apps that have found success in China are Sina.com, a Web portal that gives access to news updates and blogs; QQ, a popular instant messaging system; and Western software like the Command & Conquer game from Electronic Arts. For now, most applications are priced and detailed in English, but it hasn't prevented an estimated $1 million in legitimate iPhone application sales this year.
One of the biggest issues for the iPhone in China is the large black market from which unofficial handsets have been purchased. While official phones got off to a slow start, it is estimated that there are two million total iPhones in circulation in the nation, most of them "jailbroken." Those hacked phones can be used to run unauthorized code and pirate App Store software.
According to the Journal, most pirate Web sites have "detailed instructions" in Chinese, spelling out how to steal software and install on the iPhone. This is in contrast to the non-native language commonly found on the official App Store.
Even if its slow start for iPhone sales continues, Apple would still sell an estimated 550,000 handsets in its first year. Some expect the sales to pick up, though, once a new model with Wi-Fi is introduced. The feature was left out of the launch phone because the Chinese government temporarily banned the wireless standard. That ban was relaxed in May, after manufacturing of the new iPhone began, and carrier China Unicom hopes to have Wi-Fi in the next batch of phones intended for release by the end of the year.
More sales, and App Store activity, could come from a potential deal with China Mobile, the world's largest wireless carrier. Apple entered an agreement with China Unicom in August, but the non-exclusive deal left the door open for other carriers.
Popular applications in China include a Chinese-to-English translator and dating software to find "soul mates," according to The Wall Street Journal. The early success of the App Store comes in spite of the cards being stacked against it: China Unicom was estimated to sell just 5,000 iPhones at launch, the hardware only offers 3G Internet connectivity, and App Store purchases require a credit card issued by a Chinese bank, which is not commonplace.
Among the apps that have found success in China are Sina.com, a Web portal that gives access to news updates and blogs; QQ, a popular instant messaging system; and Western software like the Command & Conquer game from Electronic Arts. For now, most applications are priced and detailed in English, but it hasn't prevented an estimated $1 million in legitimate iPhone application sales this year.
One of the biggest issues for the iPhone in China is the large black market from which unofficial handsets have been purchased. While official phones got off to a slow start, it is estimated that there are two million total iPhones in circulation in the nation, most of them "jailbroken." Those hacked phones can be used to run unauthorized code and pirate App Store software.
According to the Journal, most pirate Web sites have "detailed instructions" in Chinese, spelling out how to steal software and install on the iPhone. This is in contrast to the non-native language commonly found on the official App Store.
Even if its slow start for iPhone sales continues, Apple would still sell an estimated 550,000 handsets in its first year. Some expect the sales to pick up, though, once a new model with Wi-Fi is introduced. The feature was left out of the launch phone because the Chinese government temporarily banned the wireless standard. That ban was relaxed in May, after manufacturing of the new iPhone began, and carrier China Unicom hopes to have Wi-Fi in the next batch of phones intended for release by the end of the year.
More sales, and App Store activity, could come from a potential deal with China Mobile, the world's largest wireless carrier. Apple entered an agreement with China Unicom in August, but the non-exclusive deal left the door open for other carriers.
Comments
Apple should ban all iPhones from the iSore if they have been jailbroken. That would show those miscreants that they are NOT allowed to do ANYTHING not approved by iSteve!
I was thinking more along the lines of the iPhone battery being wirelessly commanded overload and then exploding moments later but okay App Store denial would be another way to go I guess...
Apple should ban all iPhones from the iSore if they have been jailbroken. That would show those miscreants that they are NOT allowed to do ANYTHING not approved by iSteve!
Thanks iTroll. I use jailbroken Touch, and yet I bought a bunch of apps from the store, including C&C for 9.99, so don't tell me that us jailbreakers don't pay. Also I would love to have springboard in official store, but is not there at all. Just like hackingtoshes did not dent Apple sales, neigther do jailbroken ipods.
I guess if I knew a Wi-Fi enabled phone was coming out in a few months I wouldn't buy one either.
exactly, nor would I.
Thanks iTroll. I use jailbroken Touch, and yet I bought a bunch of apps from the store, including C&C for 9.99, so don't tell me that us jailbreakers don't pay. Also I would love to have springboard in official store, but is not there at all. Just like hackingtoshes did not dent Apple sales, neigther do jailbroken ipods.
No, but there is a sizeable amount of the population (especially in China, where IP is not regarded as stealing, but rather communal property) that have no problem doing what we call stealing on jailbroken iPhones, because they don't really apply ethics to the applications on the App Store. I jailbreak my phone too, but mostly only to get it unlocked and get a calendar for the lockscreen. I actually found that the customized interface (i.e. Winterboard) made the phone less responsive than using it w/o customizing the interface, so I dunno, there's a tradeoff between looks and performance there.
But off on a tangent. Anyway, getting back to the piracy issue, this explains most of where the pirated apps go... to China, where there are sites that freely advocate for stealing software and buying bootleg hardware
Ah, App Store as the trojan horse. I wonder how sustainable an advantage that will be, as Android gets better and better on that score.
Yes, because I'm sure that during that time, Apple will just sit there, completely static. Apple never changes or comes out with anything new. They just sit around while everyone else rockets forward with new technologies and products.
Thanks iTroll. I use jailbroken Touch, and yet I bought a bunch of apps from the store, including C&C for 9.99, so don't tell me that us jailbreakers don't pay. Also I would love to have springboard in official store, but is not there at all. Just like hackingtoshes did not dent Apple sales, neigther do jailbroken ipods.
I?m right there with you. I have spent more on iPhone apps and than I have on 3rd-party apps over the last few years.
Apple should ban all iPhones from the iSore if they have been jailbroken. That would show those miscreants that they are NOT allowed to do ANYTHING not approved by iSteve!
Why? And, why are they 'miscreants'? As far as I am concerned, if Apple gets the revenue from sales of both the original iPhone and the Apps, I could care less.
Yes, because I'm sure that during that time, Apple will just sit there, completely static. Apple never changes or comes out with anything new. They just sit around while everyone else rockets forward with new technologies and products.
No, Apple will not 'just sit there.' Anyone knows that. What I am suggesting is that it will get to a critical enough mass of apps on platforms such as Android that ceases to be a major competitive advantage for Apple.
Of course, something like the iTablet and whether/how it is integrated with the iPhone experience could be a game-changer.
Ah, App Store as the trojan horse. I wonder how sustainable an advantage that will be, as Android gets better and better on that score.
With all of the phone manufacturers customizing their versions of Android and making phones that have wildly different hardware specs, I wouldn't count on the Android version of an App Store being anywhere near as user friendly, robust, or successful as Apple's. The advantage will likely be sustainable.
Thompson
No, Apple will not 'just sit there.' Anyone knows that. What I am suggesting is that it will get to a critical enough mass of apps on platforms such as Android that ceases to be a major competitive advantage for Apple.
Of course, something like the iTablet and whether/how it is integrated with the iPhone experience could be a game-changer.
The Android platform will likely degenerate into an unmanaged morass that only the geeks will enjoy. It will be more challenging to find apps that work properly on *your* particular phone, and the bugs (and viruses, and memory leaks, etc) will begin to accumulate due to lack of quality control. Note that this is exactly what the Windows world has become on PCs, and ironically, is the analogy that most iPhone/AppStore detractors use to support why Android will win (i.e. just like Windows did long ago). The only problem with that argument is that many people have learned that lesson now, and they aren't likely to be fooled so easily again.
We shall see.
Thompson
Apple should ban all iPhones from the iSore if they have been jailbroken. That would show those miscreants that they are NOT allowed to do ANYTHING not approved by iSteve!
dude you should change your name from igenius to iNutcase!
I?m right there with you. I have spent more on iPhone apps and than I have on 3rd-party apps over the last few years.
same thing here, the itunes store is a money machine, you just can't resist buying apps and games not to mention music and movies.. my 5 years old kid is always asking for my password, they made it so simple that even a kid can buy from it, really dangerous...
same thing here, the itunes store is a money machine, you just can't resist buying apps and games not to mention music and movies.. my 5 years old kid is always asking for my password, they made it so simple that even a kid can buy from it, really dangerous...
Most notably I?ve spent $10 on Beejive, a great IM app but it?s still an IM app. I spent 99¢ on an app called Asian Boobs simply because I was certain they were going to kick it out of the store soon. I?m not really attracted to Asians anyway. I?ve bought dozens of games, most of which I have never even played once. I?ve bought a koi pond app and Twitter app that I?ve never used; nd I?ve bought a how-to-make origami app and a remote Growl app that I?ve never used. I have twice as many apps for my iPhone than I do for my Mac.
It?s quite ludicrous and that doesn?t even touch on the other iTS media I?ve bought. The in-iPhone purchases are very useful. I never used the iTS for music until they offered this convenient option. Using Shazam then buying the song is so simple.
Big market. Just wait until the WiFi model comes out. It will sell like crazy.
It's impossible not to get excited when considering the possibility of Apple building an iPhone "halo" in China. If they start selling computers in that market as it heats up... Oh my!