Baidu.com Inc., China's most-used Internet search engine, posted an 87 percent jump in second- quarter profit, beating analysts' estimates and sending the shares up 13 percent.
Net income increased to 265 million yuan ($38.8 million), or 7.62 yuan per share, from 142 million yuan, or 4.09 yuan, a year earlier, the Beijing-based company said today in a statement. Sales doubled to 802.6 million yuan. The company also forecast sales that may beat analysts' estimates.
Chief Executive Officer Robin Li added to Baidu's lead over Google Inc. in China by introducing services such as online games from Shanda Interactive Entertainment Ltd. and anti-virus software from Kingsoft Corp. Baidu has almost two-thirds of the search market in China, the world's biggest Web market.
Why would they embrace Google when they like Baidu and it maintains mass appeal for their target audience? The Chinese tend to like Chinese products - particularly if they appeal to their domestic market and do things in the way that their consumers want. Right now, Google doesn't quite do that in the Chinese market and is continuing to lose market share.
Similar to e-bay which is being dumped all over by their Chinese competitors in China with market share down to just over 7% in that market (from 16% previously). Look at the competitor auction sites and you would hate their flashing banners, pop-ups etc - but they provide what the local market wants.
Different strokes etc. etc. :)
For SEM in China - Baidu rules right now and is on a roll!
Of course, things may change - but it will be Google that will have to adapt to the Chinese market - not vice-versa.
Should be "the rest of the Western world, I think..".
There are several major countries that are not dominated by Google in Asia and Eastern Europe (for example). Not to say that they are not an important player in those markets - they are just not yet the dominant player there for SEM purposes by a long stretch.