Baidu Remains the Lead Search Engine in China Despite Revenue Slowdown Predictions
May 7, 2012
Search Engine Journal recently reported on Chinese-language Internet search provider Baidu in the article “Chinese Search Market Update: Baidu Predicts Growth Slowdown.”
According to the article, despite the fact that Baidu holds 78.5% of China’s search engine market’s revenue share and its first quarter net income has increased by 75% to $677 million, its American depositary shares have gone down by 10% in the news based on predictions that revenue will slow this quarter.
The article states:
“Since Baidu currently has 412,000 marketing customers, strong operating margins, a growing Chinese middle class, no real competition, and exponential net income growth rates, many analysts are predicting that the new financial data is not cause for serious concern. Although a slow-down in growth is never something an investor wants to see, the data strongly suggests that Baidu will remain the market leader for the foreseeable future.”
This seems to be an accurate prediction, since Google has found Chinese censorship laws to be too constraining and has been consistently losing revenue share in China. It looks like, the American search giant will have to put up a bigger fight to overrule Baidu.
Jasmine Ashton, May 7, 2012
Sponsored by PolySpot
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