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Mobile Gaming Fuels Profit Surge for Global Smartphone Makers

By Xueyang
Sep. 22, 2023 updated 06:48

Mobile Gaming Fuels Profit Surge for Global Smartphone MakersMobile Gaming Fuels Profit Surge for Global Smartphone Makers

The mobile gaming industry's meteoric rise is now a significant driver of profit for leading smartphone manufacturers worldwide, according to recent financial data. Major companies like Huawei and Vivo are enjoying substantial gains from gaming-related channel fees, claiming as much as 50% of the revenues from this source alone.

Xiaomi's financial report for 2022 paints a vivid picture of this trend. The Chinese tech giant disclosed that its gaming revenue accounted for a staggering 48% of the company's net profit, reaching 4.1 billion CNY (approximately 640 million USD). It's clear that Xiaomi, like other industry leaders, is increasingly reliant on gaming as a critical part of its financial strategy.

In the first half of this year alone, Apple's App Store reported a total game expenditure of 24.6 billion USD, making up a whopping 56.5% of the App Store's total user spending. This figure underscores just how integral gaming has become to Apple's marketplace and its bottom line.

As mobile gaming continues to surge, it's evident that smartphone manufacturers are not merely beneficiaries but active stakeholders in this booming sector. With gaming now a cornerstone for profits, it's likely that these tech companies will delve even further into the gaming ecosystem, developing more advanced hardware and software solutions optimized for an ever-growing gamer base.

Source: Weibo