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The news is certainly a cause to worry for giants like Apple and Google. Asian-origin mobile applications Line, Yay and WeChat are posing serious challenge to technology giants Apple, Facebook, Google and other telecoms carriers by cutting into their market shares.
A Singapore-based firm claimed, the social messaging services have become alternatives and offer more options for product advertisers, providers of goods and services and mobile apps.
The advantage of new inventions is that they allow Tencent Holdings’ WeChat users to book taxis, top up phone credit, while Clone Algo’s Yay app users are able to talk and chat free besides being able to apply for online for micro loans and use Clone Algo trading algorithms.
Companies marketing these services are further strengthening their product lines and marketing through acquisitions and raising funds for more research and development work, he said.
Rakuten Inc has acquired messaging company Viber for $900 million to gain further ground in the market place.
Infact, recently launched Yay had difficulties in penetrating some of the smaller emerging markets because of the lack of scale or distribution infrastructure. But with the launch of Yay Micro loans, the service can now penetrate markets with our digital businesses.
Over 50% of the active smart phones are on these user-friendly apps, which has already replaced the traditional short messages or SMSes.
The big players are fully aware of the challenges, but are not in a position to challenges the newcomers who are usually dominant in their domestic markets, Yay in India and Middle East, Line in Japan, KakaoTalk in South Korea and WeChat in China.