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With More Than 510M Users, APUS Announces Plans to Fully Enter the Japanese and ...

2015-11-03 APUS

BEIJING, Nov. 3, 2015 /PRNewswire/ -- APUS Group announced on October 31st that with the number of APUS User System users exceeding 250 million this September, the total number of APUS users has hit the 510 million mark. The APUS product cluster includes APUS User System, APUS Booster+, APUS Browser, APUS Message Center, APUS Theme, and more.

This is the first time that APUS has disclosed its total number of users. With its massive global user base, APUS Group has announced that it plans to fully enter the Japanese and South Korean markets and that it will kick off its marketing and localization process by targeting the mature mobile Internet market in both countries. This is another big move by APUS Group to enter a regional market, following its previous successful endeavors to enter India.

1. The Solid Foundation APUS Group Has Built in Japan and South Korea Has Already Rewarded the Company with More than 25M Users

APUS Group has often emphasized the value it places on emerging markets. It has even launched a detailed market plan by region, but the Japanese and South Korean markets were never a core part of the discussion.

Despite this lack of focus, in the past year or so, APUS Group has amassed a 5% market share in terms of number of users in East Asia, with Japan and South Korea as the two leading markets. In other words, APUS's product cluster has won the brand more than 25.5 million users in Japan and South Korea, which accounts for 15% of the total population of the two countries combined.

Li Tao, founder and CEO of APUS, had conducted a thorough analysis of the structure of the global Internet industry before founding APUS Group. He thinks that the global Internet industry can be divided into three groups: the U.S.-represented mature market, the Chinese market and the emerging markets. As the leaders in the mobile Internet arena, Japan and South Korea are ranked No.1 and No.3 respectively in terms of their ability to monetize mobile games.

According to App Annie, in the hot and much-coveted mobile gaming markets of Japan and South Korea, 8 out of the top 10 Android developers whose games are most downloaded are local Japanese companies. However, when it comes to productivity apps, local companies in Japan or South Korea do not demonstrate all-out strength, creating an opportunity for Chinese mobile Internet companies.

On the basis of these statistics, the APUS User System began with productivity apps in building out its client base in Japan and South Korea, and it has quickly outshone others in this area. Li Tao has said that Japan and South Korea are the best markets to monetize mobile Internet businesses. The user bases APUS User System has built in Japan and South Korea will help support APUS's further developments in these markets.

2. As Leaders in the Mobile Internet World, Japan and South Korea Still Show Great Potential

Looking at the market cap of the mobile Internet industry in Japan and South Korea, one might find that the penetration of mobile Internet is high, at 90% level. In 2015, the mobile gaming market in Japan will exceed 9 billion USD, while its counterpart in South Korea will also be larger than 2.5 billion USD. In South Korea, Android-powered mobile devices will contribute 93% of the total value, and the country will generate the third highest revenues for Google Play, next to Japan and the U.S.

In terms of the values that Japanese and South Korean users can create, Japan recorded ARPD (average revenue per download) of 5.32 USD, six times greater than China. In this regard, it is ranked No.1 in the world. Another important index that can interpret the commercialization of mobile Internet is the difference between ARPD and CPI (Cost per Install). The Japanese market, with a difference at an astonishing level of 4.58 USD, stands above other markets. South Korea is pretty close to Japan in regard to the overall payments its gamers make, but payments for games in the middle price bracket account for a higher percentage of total payment amounts than in Japan. On top of the willingness to pay for games, the user stickiness of mobile apps in Japan and South Korea is also much stronger than other markets. According to App Ape, a Japanese data survey company, Android cellphone users in Japan have become increasingly more active with comics, gaming and online shopping apps. The annual growth rate of the number of times gaming apps are opened on cellphones is as high as 22%. Many mobile games apps have been downloaded 30 million times respectively, a number way ahead of other countries and markets.

As for the makeup of users, young users in Japan have become the backbone of the mobile Internet market. Smartphones have become the first choice for youngsters who game. According to a game users' survey by NPD Group, another Japanese data survey institution, smartphones are the most preferred devices for young gamers. 63% of the people surveyed prefer to play games on their mobile phones, while only 45% still stick to PC-end games. However, last year, the number of PC-end gamers was 67%. One question in the NPD Group survey asked: "Do you prefer to play games on PCs or on your cells?" Results indicated that 63% of the people surveyed lean towards mobile games, while 41% of them said they "spend more time playing mobile games now than a year ago."

Notably, the proportion of male and female mobile gamers in Japan is four to six, in stark contrast to the global average of seven to three. In terms of the amount of time spent playing games, female gamers tend to play for longer than the opposite sex. So, it appears that female gamers are more prone to addiction.

3. Marching Towards Japan and South Korea, APUS Group is Poised to Earn a Slice of the Quality Local Mobile Internet Market

Li Tao of APUS Group said that as the total users of APUS globally hits the 510M mark indicating APUS's business is blossoming all over the world, the seeds for business have been sown in quality markets such as Japan and South Korea. Over the next 12 months, APUS Group will stay focused on the Japanese and South Korean markets by bringing a large number of Chinese mobile gaming companies to these two markets and by helping local Japanese and South Korean companies sell their mobile Internet products to global customers.

Li Tao shared some statistics on APUS's inroads in Japan and South Korea.

In terms of the average number of APPs installed per person, Japan takes the lead by an average of 67 while Korea follows with 65; both are way higher than the global average of 42.

In terms of the average number of games installed per person, Japan and South Korea are at 17 and 15 respectively, also much higher than the global average of 9. Among the top 10 apps in Japan, 6 are games, 2 are social applications and the other two are productivity applications. And on South Korea's Top10 Chart, 5 are social applications, 4 are games and 1 is a productivity application.

With More Than 510M Users, APUS Announces Plans to Fully Enter the Japanese and South Korean Markets No. of APPs installed per person and No. of games installed per person in Japan and South Korea

In terms of average time spent playing games daily per person, Japanese users spend an average of 48% of their daily mobile phone time playing games, meaning that out of the total time they spend on their phones, almost half is spent playing games. In South Korea, although users would use 40% of their daily time playing games, which is a lower percentage than their Japanese counterparts; they certainly spend the most time on their games apps, whereas in other markets, people normally spend the most time using messaging apps.

In terms of the average number of apps downloaded on a daily basis, Japan is at about 2.02 while South Korea is at around 2.03. In regards to the average number of apps opened on a daily basis, that number for games apps in Japan is 22, fewer than that of social apps. In South Korea, the number of games APPs opened on a daily basis is 16, slightly less than Japan but way ahead of other countries.

As for how the users are connected to the mobile Internet, the Japanese and South Korean markets have both upgraded to the 3G network or above already. In Japan, about 16% of the users use 3G, 42% use 4G and approximately 40% use WiFi. In South Korea, around 20% of users use 3G, 41% use 4G and 38% use WiFi.

With More Than 510M Users, APUS Announces Plans to Fully Enter the Japanese and South Korean Markets How users are connected to the mobile Internet in Japan and South Korea

Li Tao has also said that the mobile Internet markets in Japan and South Korea are already very mature in terms of Internet access, as measured by the average number of apps installed per person, the average number of apps downloaded on a daily basis, and the frequency and time of game playing. The APUS User System plays an integral part in all that. APUS Group's planned full entry into the Japanese and South Korean markets this time would be different from its expansion in India and would take the following approach:

In products: make improvements to meet the demands of the local Japanese and South Korean users; for example, faster speeds and power saving functionalities designated for game playing.

In marketing: make the most of the existing mature APP market in the two countries and enhance the localization of APUS's products. In user service: given the cultural differences and language barriers, APUS will be focused on building a local operation team to ensure that APUS User System can better serve its local users.

Li Tao projected that by providing its Japanese and South Korean users further services, the company is going to benefit a lot from these two markets, just as other mobile Internet products have.

APUS was established in June 2014 and the company is dedicated to providing the best mobile Internet products and experience to smartphone users in the world. Currently the smartphone operating system the company provides has become the third largest in the world, behind only Android of Google and iOS of Apple.

On top of the original mobile phone operating system, APUS is able to provide an innovative, comprehensive user system which can help users with their various needs when they use their mobile phones and access the mobile Internet. The APUS User System includes the management of the phone interface, the system, users' contacts and social relationships, and user information and acquired information. It can also manage and access apps on a user's mobile phone.

The APUS User System is well accepted and very much liked by its users. On Google Play, APUS has received five-star reviews from more than 4 million users; and on Facebook, APUS has approximately 4 million followers who are now loyal advocates of the brand.

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