Google's mobile problem in China takes its toll

By IVCPOST Staff Reporter

Jul 27, 2013 02:37 PM EDT

The Android operating system of Google was the dominant force in the smartphone market of China. However, Google captured a little share of China's rapidly expanding mobile search market. According to analysts, the real threat to Google was the fact that China might serve as an aggressive plan on how to keep the mobile market share away in the US.

Google's business came under pressure in China since March 2010. The corporation decided to route China search queries into its uncensored servers in Hong Kong. This was after Google became unhappy about the censorship demand of China.

Android runs 82% of all the smartphone in China. However, Google only owned mobile search market's 20% share due to the pressure from the country. This was in contrast with the US market where 39% of the entire share was held by Android.

When China declared that androids already became too dominant in its mobile market, Baidu took over the lead with 78% share. The Beijing-headquartered company reported a US$431 million revenue, up 39% with 10% of the revenues earned from it mobile enterprise.

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