NETEASE TO BOOST INVESTMENT IN MOBILE INTERNET

NetEaseInc, amajorInternetportaloperatorinChina, planstoinvestheavilyinmobileWebservices, saidaseniorcompanyofficial, ascompaniesarerushingtosecureapositionintherisingsector.

WilliamDing, NetEase’schiefexecutiveofficeranddirector, saidthefirsthalfoftheyearwillseethelaunchofafullportfolioofmobileInternetservices.

Thecompanyhasofferedanumberofservicesformobiledevicesforsometime, includingadictionary, newsandanote-takingapplication, asanincreasingnumberofpeopleturntomobiledevicestoaccesstheWeb.

Lastyear, thecompanyspent 718.3 millionyuan ($115.2 million) onresearchanddevelopment, anincreaseof 54.3 percentyear-on-year. Dingdidn’tdisclosetheamountthecompanyplanstospendthisyear.

However, “mobileInternetservicesarenotlikelytocontributealottototalrevenue” inthenearfuture, DingsaidonThursdayduringaconferencecall.

MostofChina’sInternetcompanieshaveseenmobiletrafficrisequicklyas 420 millionpeople, or 74.5 percentofthecountry’stotalInternetusers, accessedtheWebviamobiledevicesattheendofDecember.

However, fewcompanieshavebeenabletotranslatethattrafficintoconsiderablerevenueastheyarestilllookingforwaystomakemoneyfromthoseservices, whileprovidingagooduserexperience.

“AlthoughNetEasehasn’tcomeupwithaproductaspopularasSinaWeiboorWeChatforthemobileInternet, theprospectsforthecompanyaregoodingeneral, consideringitsadvantagesonthedesktopsector,” saidChenZhengyu, astockanalystwithChinaMerchantsSecurities (HK) CoLtd.

NetEaseistheoperatorof 163.com, apopularChineseWebportal.

SinaCorp’smicro-bloggingserviceSinaWeiboandTencentHoldingsLtd’sinstantchattingserviceWeChatareregardedasthetwoproductsmostlikelytogivethecompaniestheupperhandinthemobilesector, wheretherearestillnoclearleaderscomparedwiththedesktopfield.

NetEase, whichisalsoChina’ssecond-largestonlinegamesoperator, generatesnearly 90 percentofitsrevenuefromWebgames, includingrevenuefromoperatingBlizzardEntertainmentInc’shitgameWorldofWarcraft.

DingsaidthecompanyhopestohavemoreregularlaunchesofnewexpansionpacksforWorldofWarcrafttoattractnewusers.

In 2012, thecompanyreportedrevenueof 8.4 billionyuan, up 12 percentyear-on-year. Itsnetincomegrew 12.5 percentto 3.6 billionyuan.

chenlimin@chinadaily.com.cn

 

 NetEase to boost investment in mobile Internet

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