Understanding mobile requires an understanding of mobile in China

As can be seen in the first chart below, China has overtaken the US in terms of Apple and Android smartphone users.  Smartphone penetration in China was reported by Forbes in February to be only 22%.  The U.S is now over 50% penetrated. China exceeded 1 billion total mobile users in May 2012.  This implies that as many as 300 million more smartphones will have to be sold to cause market penetration to approach the U.S. The scale and rate of growth of the Chinese market has attracted all the global players in a race for lower cost smartphones, more robust operating software and more efficient infrastructure.  In addition – few would guess that the largest e-commerce company in the world is Alibaba – a Chinese online merchant with gross merchandise volume that exceeds the combined GMV of Amazon and eBay.  Much of that e-commerce will migrate to a mobile context as mobile is becoming the primary method for consumer internet access in China.  Consequently, to understand mobile, one must have an understanding of what is occurring in China. Aberdeen has a substantial investment in a Chinese mobile software and services company and we continue to search for more opportunities. Jeb B. Terry, Sr. June 5, 2013

Chinese v US Smartphone users 5-2013

Chinese v US Internet time 5-2013

Alibaba v Amazon v eBay

Aberdeen Investment Management – a guide service for micro-cap technology investment

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