According to the report, total app downloads reached 28.6b (+12.3% QoQ) in Q314. Baidu's app distribution platform maintained their collective leading position, with a 41.8% market share. Following Baidu, Qihoo captured a 22.7% marketshare. Tencent's platform meanwhile continued their strong momentum, with their share increasing to 21.5% from 20.1% in 2Q14. We note that the total daily app distribution of Tencent's platform surpassed 100m in Oct, double the amount when compared with Jan of this year (50m).
We note that the government recently cracked down many apps deemed to have inappropriate content. The authorities required the app store operators to cooperate in its investigation. We do not expect this issue to cause material impact on the companies app store business as the questionable content only accounts for a very small portion of their app libraries. The app stores moreover have taken a range of actions to prevent such content from being distributed again.
