These Stocks Will Benefit from Billions of China’s Mobile App Downloads

Total mobile application downloads for both smartphones and feature phones in China will reach 5.5 billion next year, according to ABI estimates. Electronic Arts (NYSE:ERTS) could be a big beneficiary given its efforts to provide Chinese-language support for its mobile games. Other big winners could be local online game developers Netease.com Inc. (NASDAQ:NTES), Perfect World Co., Ltd (NASDAQ:PWRD), Shanda Interactive Entertainment Ltd (NASDAQ:SNDA), and Giant Interactive Group, Inc (NYSE:GA).

PopCap’s “Plants vs. Zombies” and Electronic Arts’ (NASDAQ:ERTS) “Need for Speed” have instructions in Chinese so users can easily understand the game. App localization, which is key, can also mean working with local partners such as Renren (NYSE:RENN) and Weibo (NASDAQ:SINA) — two Chinese social networking sites that can cause apps to go viral.

More than 90% of apps offered in China offer local content. Expansion of China’s 3G subscriptions — which are expected to jump from 102 million in 2011 to 540 million in 2016 — are driving app download growth as well.

Pricing and payment options are critical to success in the Chinese app market,” adds ABI vice president Jake Saunders. “Chinese consumers are very price sensitive and less willing to pay the same fees as US consumers for the same content. To help alleviate such issues, local app stores Mobile Market, WoStore, and eStore allow developers to price apps much lower than other stores such as Apple (NASDAQ:AAPL). They also offer mobile carrier billing or support for local online payment accounts.”

Here’s how these app stocks and Chinese telecoms are trading:

  • Electronic Arts Inc. (NASDAQ:ERTS): ERTS shares recently traded at $20.95, down $1.04, or 4.73%. Its market capitalization is $6.94 billion. They have traded in a 52-week range of $14.67 to $26.13. Volume today was 2,564,076 shares versus a 3-month average volume of 8,036,240 shares. The company’s trailing earnings are $-0.88 per share. About the company: Electronic Arts Inc. develops, publishes, and distributes branded interactive entertainment software worldwide for video game consoles, personal computers, handheld game players, and cellular handsets. The Company also provides online game-related services. Get the most recent company news and stock data here >>
  • Netease.com Inc. (NASDAQ:NTES): NTES shares recently traded at $44.56, down $1.47, or 3.19%. Its market capitalization is $5.82 billion. They have traded in a 52-week range of $35.20 to $55.00. Volume today was 137,935 shares versus a 3-month average volume of 1,010,470 shares. The company’s trailing P/E is 13.03, while trailing earnings are $3.42 per share. About the company: NetEase.com Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company provides online gaming services thatinclude in-house developed massively multi-player online role-playing games and licensed titles. NetEase also provides free email and various channels of content, online advertising, search and community services. Get the most recent company news and stock data here >>
  • Perfect World Co., Ltd. (NASDAQ:PWRD): PWRD shares recently traded at $11.50, down $0.94, or 7.56%. Its market capitalization is $571.33 million. They have traded in a 52-week range of $11.34 to $35.23. Volume today was 281,189 shares versus a 3-month average volume of 551,060 shares. The company’s trailing P/E is 4.20, while trailing earnings are $2.74 per share. About the company: Perfect World Co Limited develops and operates online games. The Company primarily develops 3D gaming technologies. Get the most recent company news and stock data here >>
  • Shanda Interactive Entertainment Ltd. (NASDAQ:SNDA): SNDA shares recently traded at $39.36, down $0.04, or 0.1%. Its market capitalization is $2.22 billion. They have traded in a 52-week range of $28.44 to $54.20. Volume today was 134,110 shares versus a 3-month average volume of 172,735 shares. The company’s trailing P/E is 45.77, while trailing earnings are $0.86 per share. About the company: Shanda Interactive Entertainment Ltd, operates online games in China. The Company offers a portfolio of online games that users play over the Internet. Shanda’s games are licensed from third parties as well as developed in-house. Get the most recent company news and stock data here >>
  • Giant Interactive Group, Inc. (NYSE:GA): GA shares recently traded at $3.66, down $0.3, or 7.58%. Its market capitalization is $863.60 million. They have traded in a 52-week range of $3.02 to $9.45. Volume today was 319,470 shares versus a 3-month average volume of 1,207,280 shares. The company’s trailing P/E is 6.31, while trailing earnings are $0.58 per share. The company pays a dividend of $0.17 per share for a dividend yield of 4.30%. About the company: Giant Interactive Group Inc. develops online games. The Company focuses on multiplayer online, or MMO, games that are played through networked game servers in which players are able to simultaneously connect and interact. Get the most recent company news and stock data here >>
  • China Mobile Limited (NYSE:CHL): CHL shares recently traded at $48.53, down $0.19, or 0.39%. Its market capitalization is $194.78 billion. They have traded in a 52-week range of $43.51 to $51.98. Volume today was 234,532 shares versus a 3-month average volume of 1,549,490 shares. The company’s trailing P/E is 10.16, while trailing earnings are $4.78 per share. The company pays a dividend of $1.83 per share for a dividend yield of 3.70%. About the company: China Mobile Limited, through its subsidiaries, provides cellular telecommunications and related services in the People’s Republic of China and Hong Kong SAR. Get the most recent company news and stock data here >>
  • China Unicom (Hong Kong) Limited (NYSE:CHU): CHU shares recently traded at $21.33, down $0.28, or 1.3%. Its market capitalization is $50.25 billion. They have traded in a 52-week range of $13.17 to $22.50. Volume today was 184,761 shares versus a 3-month average volume of 1,748,300 shares. The company’s trailing P/E is 85.30, while trailing earnings are $0.25 per share. The company pays a dividend of $0.11 per share for a dividend yield of 0.50%. About the company: China Unicom (Hong Kong) Limited, through its subsidiaries, provides telecommunications services in the People’s Republic of China. The Company’s services include cellular, paging, long distance, data, and Internet services. Get the most recent company news and stock data here >>
  • China Telecom Corp. Ltd. (NYSE:CHA): CHA shares recently traded at $59.80, down $1.54, or 2.51%. Its market capitalization is $48.40 billion. They have traded in a 52-week range of $49.70 to $67.97. Volume today was 14,878 shares versus a 3-month average volume of 95,677 shares. The company’s trailing P/E is 19.29, while trailing earnings are $3.10 per share. The company pays a dividend of $0.98 per share for a dividend yield of 1.60%. About the company: China Telecom Corporation Limited, through its subsidiaries, provides wireline telephone, data, and Internet, as well as leased line services in China. Get the most recent company news and stock data here >>

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