Market Share Nibbled by 360, NetQin Plans to Explore Oversea Market
News from Kejixun on August 1, NetQin declared today that they have appointed Chris Stier, the former senior manager of Motorola as their standing director of newly established NetQin U.S. company, and in charge of business development of U.S. market as well as supervision on sales and marketing. Insiders believe that because domestic market didn’t perform well enough, NetQin wants to develop overseas market.
NetQin announced on July 25 that their registered users for mobile Internet services have exceeded 100 million. The services NetQin providing include anti virus, anti junk messages, secret protection, data backup and data recovery.
Soon after the announcement, Kejixun called relevant staff in 360.cn, but they declined to give comments on the above data. However, they assured that their product—360 Mobile Safety Guard has accounted for more than 60% market share in China.
As the latest data from Eguan International showed, active users of the whole China’s mobile safety market has reached 44.8 million in the first quarter this year, in which 360 ranked the first with 53% market share, and NetQin accounted for 30% ranking the second. So the active users of NetQin were 13.44 million. If its former announcement of over 100 million users was true, it means most of NetQin’s users were from overseas.
Regarding this, Li Zhongcun, the mobile Internet expert and founder of Kejixun, the window of mobile Internet, expressed that a not very good domestic market environment is probably the main reason for NetQin to choose oversea market.
In fact, as Kejixun learned, influenced by both the revelation exposed on 3.15 Evening by CCTV in March and the stresses from competitors, the increasing speed of NetQin’s users has been slowing down. Related news also claimed that four of NetQin’s former underwriters withdrew before IPO, which would directly cause a shrinking of market price and even influence its stock price hereafter.
The above statement didn’t come from nowhere because since its listing on May 5, NetQin’s stock price has been kept in a low state. Today, it opened at 7.94 dollars per share, which is 3.56 dollars lower than the issuing price of 11.50 dollars.
Insiders said that both the fact that its share price has kept in a low stage and its domestic market share being nibbled by 360 led to a shrinking down of its market share. If NetQin don’t accelerate the development of oversea business, its shrinking market share in China could hardly prop up a rising of its stock price. Therefore, it is extremely urgent for NetQin to speed up the exploration of oversea market.