To view in a browser, http://www.pearlresearch.com/newsl/0211s.html | Unsubscribe link at end of page

In This Issue - February 2011 Pearl Research Newsletter

+ Apple's success in China, revenues increases 4x for the company
+ Exclusive "Online Game Publishers in Asia" study released
+ Game Developers Conference (GDC) San Francisco, March 1-4, contact us to meet up

Apple grows in China

Apple achieved a blockbuster Q1 quarter with worldwide sales and net income of $26.7 billion and $6 billion, up 71% and 78% YOY, respectively. Greater China (mainland China, Taiwan, Hong Kong) revenues quadrupled to $2.6 billion and represented 10% of sales.

In this analysis, Pearl Research draws from our “Phoenix Generation” reports, exclusive, primary research on Chinese consumers, to analyze Apple's success in the market. Please contact us for an excerpt or to purchase the full report.

High traffic and high revenues
Apple executives, stated in a January 18, 2011 earnings conference call that the Apple stores in China generate the “highest traffic and highest revenue of any company stores in the world.” In the call, Timothy Cook, COO of Apple, also said, “several years ago, identified China as our top priority, and we put enormous energy into China. And the results of that has been absolutely staggering.”

Apple store in Beijing, source: Apple

Apple has been able to carve market share with products Chinese consumers call “trendy” and “cool” and “high-quality”. In Pearl Research's interviews, females were more likely to cite “trendiness” and “design” as key factors to wanting to purchase an iPhone while males cited “utility” as the chief reason. Lang S., Tianjin, male 22, says, “Chinese people are always on the lookout for new trends and fashions, especially for foreign ones. They want to have the best brand of every product.”

Cell phones confer status / IPod ownership
Cell phones in China represent a status symbol. With these cultural expectations, Apple's exclusive and high-end products represents a status symbol, similar to a luxury car or an expensive home. Li Y. from Chongqing says “When I was going to college, I felt pressured to use an expensive cell phone because all my classmates are using them."

In addition, in our interviews, we found that 80% people who wanted to purchase iPhones also owned an iPod MP3 player. Our interviewees, who were iPod owners, were satisfied with their prior Apple purchases and believed the iPhone would be an extension of the quality they had experienced with their iPods. Thus, the iPod has established a consumer segment in China familiar with Apple products.

Apple advertisements for the Iphone, source: Apple

Overall, reasons such as the innovative design, utility, Apple’s reputation as a trend setter, past experience with other Apple products and the “cool person” image iPhone brings to its user were cited as reasons why users were interested in the phone. Of those who were not interested, the reasons cited were its high cost, unfamiliar user interface, and Apple’s lack of experience in the cell phone market.

Please contact us at research@pearlresearch.com or call 415-738-7660 to view excerpts from the report, for more information or to purchase.

Online Surveys and Data Analysis

With a highly skilled staff, including PHd statisticians, Pearl Research offers online survey and data analysis services at cost-effective rates.

Please contact us for a free quote. We conduct both business-to-business and business-to-consumer surveys.

Exclusive Study: "Online Game Operators and Publishers Across Asia"

Pearl Research is pleased to announce its exclusive market research report "Online Games Publishers and Market in Asia" is available. This study analyzes more than 25 top online game publishers in Asia.

Pearl Research's "Online Game Publishers in Asia" study contains profiles of key market players including market share, financial data, key metrics, product analysis; and strategic outlook. The study contains more than 160 pages. Companies covered in the report include Changyou, CJ Internet, Giant Interactive, NCsoft, Neowiz, Netease, Nineyou, NHN, Perfect World, Shanda, Soft-World, Tencent and Vinagames and much more. Pearl Research also tracks licensing deals, investment, and mergers and acquisitions across the region.

Please contact us at 415-738-7660 or email research (at) pearlresearch.com for a free sample.

Pearl Research Exclusive Studies

Please contact us for an excerpt of these reports.

i. Games Market in China, Korea, India and Vietnam

These comprehensive studies examines the emerging games market in China, Vietnam, Korea and India. The reports include an executive summary, key metrics, forecasts, deep marketplace analysis, profiles and conclusions.

Screenshot of India study

Contact us at research (at) pearlresearch.com or call 415-738-7660 for an excerpt.

ii. Phoenix Generation - Online Games Tournaments, Success of Casual Game Audition, Virtual Currency

Pearl Research's "Phoenix Generation" study tracks the latest trends among Chinese youth. These primary research studies are based on interviews and surveys with Chinese consumers in first- and second-tier cities across the country. This update analyzes the growth of online game tournaments, the success of games such as Audition and the latest laws regarding virtual currencies.

iii. How the World's Biggest Social Networking Sites Monetizes

This study analyzes the monetization of social networking sites such as Qzone (with 200+ million members), Kaixin, and Renren, along with exclusive consumer survey results for Facebook and Myspace conducted by Pearl Research. The study also provides key insights based on the growth of these sites. Please contact us to view a complimentary excerpt.

Pearl Research |Products | Join our mailing list
Email: research (at) pearlresearch.com
Phone: (+1) 415-738-7660

Pearl Research is a San Francisco- and China-based consulting and market research firm that focuses on the Internet, games and technology markets. We send out a newsletter 10 to 12 times a year. Please contact us for more info about our services or for any questions. To unsubscribe, please click the link below.