1. The Emergence of Android in China 2011.06.10, Michael Veal, Rumble Media GmbH www.playandroid.com 1

2. Agenda 1 Mobile Market in China 2 Android in China 2

3. 1 Mobile Market in China 3

4. Mobile users in China has increased by 40 million in Q1 Source: China Daily, 2011 Number of mobile phone users in China (in Millions) There are a massive amount of mobile users in china, rising to nearly 1 billion. This is more than the enitre population of the USA. The number of users increased in Q1 2011 by 40 million. 4

5. Mobile internet usage on the rise The Chinese Mobile Internet market has continued to grow over the past few years, and looks set to do the same for years to come. Over 400 million users are predicted to use their phones to access the internet in 2011, and by 2014, that figure is expected to reach 750 million. Source: iResearch, 2011 5

6. Mobile gamer percentage still behind US in 2010 In 2010, nearly 60% of revenue from internet usage came from mobile value-added services. Gaming and advertising only account for a relatively modest amount of share (12.7% and 5.9% respectively). Source: iResearch, 2011 6

7. Mobile games accounted for 14% of usage in Q1 Q1 2011 figures show that gaming has 14% of the mobile internet market composition – behind M- Commerce and Mobile VAS The share of gaming has increased in 2011 from its 2010 figure, shown in the other slide (from 12.7% to 14%). Source: iResearch, 2011 7

8. Mobile gamer percentage still behind US in 2010 Mobile usage for 15-24 year olds in 2010 (percentage) China definitely has some unrealised potential. Only around 23 percent of Chinese users download games to their mobile phones. The mobile usage figure is curerently below both the US and Russia. Source: Nielsen, 2011 8

9. Mobile Ad Spend rising massively in China China's dedication to the mobile ads has certainly grown sharply since 2009. With around $450million dollars expected to be spent on mobile ads in 2011, this is more than double the amount in 2010, and a 340% increase on 2009. The growth of China's mobile market looks set to be coupled with a huge increase in Mobile Ad Spend by 2015 - with 1.4billion dollars the expexted amount to be spent. Source: eMarketer, 2011 9

10. Mobile gamer percentage still behind US in 2010 China's mobile game market has grown 100 percent annually over the past 3 years, and the growth is likely to increase. The Chinese mobile market has a huge amount of untapped potential. At the start of 2011, China had over 800 million mobile phone users - over double the population of the US. 10

11. 2 Android in China 11

12. Android Market still unavailable in China Android Market is available in 131 countries, but China has still been omitted from this list, due to risks at an ISP level and extremely tight regulation by the Beijing authorities. China-based developers cannot sell their apps on the market, and would have to find an overseas publisher. Users in China can browse and download free apps, but paid apps are unavailable to them, as apps requiring money are subject to regulation, and free apps not. Source: Penn-Olson, May 2011 12

13. Android Market in Korea – problems encountered South Korea is one of the world‘s most active game markets. To get around this problem, Android users in Korea have had to create an account outside of Korea, or by activating Android support for third-party apps. In June 2010, Google was forced to pull all of its games from the Android Market in Korea, due to the country regulatory system, which states that games must be rated and censored before being sold to the public. Source: Techcrunch 2010 13

14. Chinese developers willing but unable Source: Vision Mobile, 2010 Android developers in China are seemingly becoming disillusioned with the lack of Android Market in China Only around a quarter have been able to publish to it, and a quarter more plan to. The rest have no desire to and wish to publish apps via other means. 14

15. Android sitting at the top of the pile Of the 8 to 10 million smartphones sold in China in Q4 2010, Google's Android accounted for 50 percent of sales - a much larger percentage than any other competitor Apple and RIM managed to sell less than 500,000 units in Q4 2010, therefore rapidly losing ground on Android. China's smartphone market grew 200 percent in 2010, and is predicted to increase by a similar amount over 2011. Currently Android is looking like the ruler of this market for years to come. Source: PhoneArena, 2011 15

16. The future looks bright worldwide IDC predicts that the market share of Android in China will be around 45% by 2015 and will easily be the world's largest smartphone OS. It has also been predicted that business users and consumers will rapidly begin to change to smartphones - with the global smartphone market in 2011 growing by 49.2% from 2010's 303.4 million shipments to a huge 450 million in 2011 Source: CNKeyword, 2011 Global Android market share increased to 35% in Q1 2011. The number of units shipped in this quarter worldwide was 35.7million, and the size of smartphone market in the APAC region overtook the EMEA region for the first time since 2007. 16