In brief
China became the world's largest iOS App Store market by revenue in Q3 2016, leading the United States by 15%. App Annie urged publishers and promoters to treat China as a core market and said Western game developers would need local partners to succeed.
Research firm App Annie reported today that, in the third quarter of this year, China surpassed the United States for the first time to become the world's largest iOS App Store market by revenue. The United States had been the world's largest iOS market since 2010. In the quarter just ended, China finally overtook it. App Annie had predicted in the first quarter of this year that, at the prevailing growth rate, China would surpass the United States before year-end.
China did more than overtake the United States: it led by 15%. In the third quarter, Chinese consumers' spending on the iOS App Store reached US$1.7 billion, five times the level of two years earlier. The Chinese market is expected to continue growing rapidly over the next few years.
Games remain the main source of revenue in the iOS App Store. However, newer revenue models, such as in-app subscriptions, are also growing rapidly. As consumer habits mature, non-game revenue is expected to account for a larger share by 2020.
In China, non-game apps are primarily in categories such as entertainment, social networking, books, photos and video. Revenue from these app categories has already increased by 200% this year.
App Annie noted that, as an app publisher or promoter, if you had not previously considered China a core market, you should at least do so now.
In the second quarter of this year, China's iOS game revenue had already surpassed that of the United States for the first time, taking the top spot globally. At that point, however, its overall iOS revenue had yet to overtake the United States. App Annie said at the time that the rise of China's iOS business could encourage Western game developers to develop games for the Chinese market. To succeed, however, they would also need to work with local Chinese companies.
Reading this, you cannot help but admire Apple's twisted stance, which has managed to cultivate Chinese consumers' willingness to pay for legitimate products.
http://www.hksilicon.com/articles/1202563