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Android App Developers Encounter Financial Deficit in China

Android is not so profitable in China.

There has been a dramatic increase in China’s enthusiasm for Google Android recently, though the platform has not reportedly been paying the bills. The number of developers has steadily increased from 0.78m in 2011 to 1.16m in 2012, yet according to combined research conducted by DCCI and Baidu’s Developer Center, nearly half of the developers are stuck with high development costs and pressures to make profit. Things are so bad that less than 20% of the developers are actually making a profit and more than 70% are struggling, say the reports.

The fact is that every 55RMB ($8.65) investment spent on developing applications normally only produces 1 yuan ($0.15) of income. In other words, developers in China are having a pretty tough time.

Compared with this dilemma in China, developers abroad have found a way out by accessing development remotely through cloud technology, which reduces their costs by 80% at most, as estimated by an insider.

In China, Baidu, Tencent and others have also launched mobile platforms for developers. Because many Chinese mobile applications have originated from the web, BAE (Baidu’s App Engine) can help convert a website into an App through the technology Site2App, and reduce the operating and maintenance costs of Apps on servers.

Some people predict a mobile Internet bubble in China; however, insiders explain that the market will neither result in a boom or in disaster. There is no doubt that mobile Internet is an irreversibly growing market. With the rapid advance of technology, good companies and applications will survive while some entrepreneurs will gradually disappear. It is survival of the fittest. In order to avoid elimination, startups should lower their development costs and improve their technology. It could also help to take advantage of the cloud platforms of Baidu or Sina.

Source: Donews (Sina Tech)


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