Baidu Could See Mobile Search Boost With Apple’s Support

BIDU: Baidu logo

Baidu (NASDAQ:BIDU) has been the biggest beneficiary of Google‘s (NASDAQ:GOOG) decision to withdraw from China, following the government’s censorship demands. It completely dominates the Chinese search market and may see a further increase in its market share thanks to Apple‘s (NASDAQ:AAPL) recent decision to incorporate Baidu directly in the iPhone as the default search engine for Chinese users. [1]

Check out our complete analysis of Baidu

Apple Integrates Baidu as Default Search Engine in Chinese iDevices

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Given the explosion of iPhone sales in China and Apple’s recent focus on the booming Chinese smartphone market, Baidu could see a lot of search traffic from iOS devices in China, which in turn would help it increase its market share and boost its search advertising revenue, which accounts for more than 60% of its value.

Baidu could generate a significant amount of revenue through mobile search advertising on iOS devices. It has already zeroed in on the mobile search ad market by launching its own smartphone platform, which is integrated with its online services. We could see mobile search ads account for an increasing portion of its overall ad revenue, going forward.

We currently have a $127 Trefis price estimate for Baidu, which stands just above its market price.

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  1. Apple Sidelines Google, Incorporates Baidu, MobileBloom []