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July 10, 2012

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Free apps preferred by mainland Apple users

CHINESE iPhone and iPad users do not seem willing to pay for applications although they may have paid several thousand yuan for the high-end mobile devices.

The downloading of applications in Apple Inc's stores has tripled in the past year and propelled the Chinese mainland to become the second-biggest App Store market but the revenue generated by the apps is limited, a report by a mobile application researcher said yesterday.

On the mainland, every iOS app download generates revenue about 3 US cents on average in May, only one-tenth the 28 cents in the US and half of the 6 cents in Vietnam, said App Annie, a Beijing-based mobile application tracking and analysis firm.

Yu Junde, business director of App Annie, said the iPhone and iPad users on the mainland "are not major consumers for paid applications."

The popular jailbreaking of iPhones and users' preference for free apps on the mainland have crimped the revenue of paid apps, industry insiders said. By jailbreaking, the iPhone and iPad users can install free apps from some websites and online forums offering such downloads.

App Annie said that by the end of May, the top 10 domestic Apple app developers had to depend on overseas income, which made up nearly 90 percent of their total revenue.

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