The profitability of China Mobile's internet will usher in a turning point in the next 12-18 months

Summary: Tencent Science and Technology (Mowgli) Beijing time July 30 news, Morgan Stanley Monday investors reported that the number of Internet users of China Mobile (micro-blog) is accelerating growth, but partly due to poor quality of mobile data services, resulting in mobile

Tencent Science and Technology News (Mowgli) Beijing time July 30, Morgan Stanley Monday investors reported that the number of Internet users of China Mobile (micro-blog) is accelerating growth, but partly due to poor quality of mobile data services, the mobile Internet is not strong profitability. Morgan Stanley predicts that the profitability of China Mobile's internet will usher in a turning point in the next 12-18 months, with many opportunities in gaming, advertising and E-commerce.

The following is a summary of Morgan Stanley Investor reports:

China Mobile's online coverage is expanding:

Since the end of 2012, China Mobile network users have reached 464 million people, more than the number of desktop network users.

It is noteworthy that nearly 40% of China Mobile internet users have previously had no PC experience.

We expect the quality of data services and the rise in smartphone penetration to help drive the use and profitability of mobile internet.

To capture Internet users ' online time:

In the third quarter of 2012, internet users in China spent more time using mobile devices than their PC online.

By the first quarter of 2013, the average time spent on mobile devices by Chinese Internet users had been 29% more than the time spent on PC Internet access.

Online video, social services, gaming, and browser services are the most popular mobile apps, gaining 50% and 80% of the average time spent on smartphones and ipads.

Driven by surging demand for mobile gaming, advertising and E-commerce, China Mobile's Internet market may have reached $9 billion trillion in 2012.

Potential winners in the mobile internet age:

1 Tencent micro-letter.

As China's largest mobile community (more than 100 million active users), the micro-letter may become the dominant mobile gaming and advertising platform.

2) Baidu.

The company has made progress on the issue of mobile search profitability (revenue has accounted for more than 10% of the company's total revenue) and has expanded user penetration through acquisitions.

3 Youku.

As a leading online video platform, Youku's recent daily video traffic is over 200 million, one-fold increase from December 2012. But until now, Youku has not yet turned its vast flow into revenue.

4) Qihoo.

Using its own user penetration on PCs and mobile security products, Qihoo has become one of China's leading Third-party mobile app stores with more than 100 million users.