Boston, MA, 03/19/2014 – Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is gaining from the Chinese craze for smartphones, particularly low cost ones. The company is already registering 50% y-on-y revenue growth and is giving heavy weights a run for their money.
The smartphone industry:
There is a very strong demand for smartphones in China; in fact all major companies are rushing to get a pie of this share. Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is also gaining revenues on account of this. Many companies, in the handset segment like Apple Inc (NASDAQ:AAPL) and Samsung Electronics are slugging it out for a pie of this market. Though they are reporting good figures, there is a huge demand for me-too products, particularly low cost versions. With the demand for smartphones, the demand for applications is also huge.
The difference in China:
China has three main wireless carriers. The way they operate differs very much from the U.S. Store managers at their stores have freedom to decide with software and applications to load in the mobiles and smartphones. In the U.S. decisions are generally taken at the national level. Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is now leveraging its assets to gain dominance by using its sales force to the maximum extent. The sales force can build relationships with brick and mortar store owners to promote their platform Secondly; the company has a very strong presence in Tier-II and Tier-III cities. These cities are among the front runners in demand for cheaper smartphones. Many of the company’s competitors do not have an active sales forces and even if they have, they concentrate only on Tier-I cities. Sky-mobi has also developed applications that run very well on the low end versions. The top software companies generally ignore this market segment totally and concentrate on the high end. It is said that there is gold at the bottom of the pyramid and Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is developing its resources to tap this hidden wealth.