CHINA NOW HAS OVER 1 BILLION INTERNET USERS

The Chinese Internet Network Information Center (CNNIC); as of June this year, China had about 1.01 billion Internet users; an 8% increase over the same period last year. It is also noted that the number of Internet audience in the country for the first time exceeded 1 billion people. At the same time, the level of Internet penetration in the country increased to 71.6%.

The increase in the number of Internet users in the Middle Kingdom over the past year was largely due to the fact that, due to the coronavirus pandemic, many people had to spend most of their time at home. During quarantine, they are accustomed to using the services of e-commerce platforms more often; making payments via Internet services and using other online services. 

As online services have become an integral part of everyday life for many people in China, tech giants are reaching a larger audience and their influence is growing at a rapid pace. 

More recently the Chinese government has tried to manage some of the large scale services to prevent them from causing systemic risk. The government wants a more competitive market system which can lead to more innovation. This includes competitive payment systems.

China with an educated population has been cranking out over 50,000 engineers annually. This is why there have been a lot of better products in the global markets.

Most of China use mobile phones and do not have a laptop or desktop PC. This is largely due to the smaller homes that are sold in China compared to other nations. Chinese designers are good at leveraging space in homes to best advantage.

BRANDS2019Q42020Q12020Q22020Q32020Q42021Q1
vivo17%17%16%18%17%24%
OPPO15%15%16%16%17%23%
Huawei25%29%33%30%20%15%
Xiaomi9%11%10%13%13%15%
Apple14%9%8%8%17%13%
HONOR10%12%13%13%7%5%
realme0%0%0%0%2%2%
Others10%7%4%2%7%3%

The market in China has moved around dramatically over time. The onslaught of new models drives sales to some extent but phones are a durable product so the market share is driven by new sales as more persons are able to afford a telephone. With 1 billion now having an internet enabled mobile phone this brings the 5/8 of the population into the mainstream. Not many left in China now that do not have a smartphone so looking forward the market will be more like the EU and NA where old phones are piling up in landfills etc.

India is growing more slowly but that is driven by the poor economy from being largely agricultural in nature. Urbanization has been slower.

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