Yu: Commercialization into a new focus of mobile browser wars

Yu Lead: UCWeb Chairman and CEO Yu today wrote in the American Science and Technology blog AllThingsD that the next stage of mobile browser contention will focus on commercialization, and in this regard American companies should learn from China. The following is the full text of the article: Over the past 20 years, the Scramble for browser control has greatly boosted the progress of desktop and mobile technology. However, Google, Microsoft, Apple and other network giants still do not really find the browser to create profit center method. Indeed, Chrome has played a key role in Google's vast search advertising business. Microsoft and Yahoo have also commercialized browsers over the past decade through ad-supported portals, and have achieved varying degrees of success. But the browser itself is treated as a free software tool. Now, the rapid growth of mobile internet has created new opportunities for technology companies to recreate browsers, not just as a free tool, but as a source of revenue. Apple, Google, opera and other companies are also looking for new browser business models for mobile devices. So far, at least the United States has not reached much consensus, most mobile browsers are still just basic Internet tools. But if American companies want to explore the business model of browsers, just look at China, the world's largest and most advanced mobile market. According to Informa, a market research firm, China has about 354 million smartphone users in 2012 years, and only 219 million in the United States. Most Chinese consumers are more likely to use smartphones to surf the internet than desktop devices. By the end of 2012, 75% of Chinese netizens were surfing the internet via mobile devices, well above 28% in five years ago. In China, other technology companies such as UCWeb and Tencent have explored innovative ways to commercialize browsers. Specifically, mobile browsers have become portals to E-commerce, gaming, and video, and browser developers have made profits by sharing revenue agreements with E-commerce sites, game developers, and content publishers, instead of relying on intrusive advertising. For Chinese consumers, mobile browsers are not just an Internet portal, but an "integrated service platform". In terms of the overall mobile business model, American companies can learn a lot from China. Tencent and Baidu, and other large Chinese internet companies, and emerging mobile companies, such as the gathering age and beauty talk, have stopped advertising as a major source of profit--a pattern most users believe will disrupt their mobile device experience--but generate revenue through income sharing, free value-added and tiered subscription models. (These commercial tools are common in the American gaming industry, but they are rare in mobile internet.) One reason for the success of the browser-centric mobile experience in China is that Chinese consumers prefer to use mobile networks, while American consumers prefer apps. But as the number of applications has reached millions, it has become increasingly difficult for American consumers to find applications that they like and need.。 With the progress of mobile browser technology in the U.S. market, more and more consumers will abandon expensive and crappy applications, instead of using Easy-to-use Mobile Web site. In fact, it is only a matter of time before American netizens use more mobile internet than China. By May 2013, 15% of the world's Internet traffic came from mobile devices, but by the end of 2014 that figure would have risen to 40%. American technology companies should be prepared for this transition from application to open mobile networks, looking for ways to commercialize browsers beyond advertising. As the world's largest and most complex mobile internet economy, China has turned mobile browsers into an integrated mobile service platform. It won't be long before American consumers are eager to get the same level of service from their mobile web browsers as Chinese consumers. (Ding Macro)