Baidu.com, Inc. (ADR)(NASDAQ:BIDU) Pares Early Gains Quickly
Shares of Baidu.com, Inc. (ADR)(NASDAQ:BIDU) was up 0.74% to $122.21, quickly lost its opening gain of over 2.40%. The stock has been under pressure over the past 6 weeks and has lost over 22%, with eroding most of its gains in the current year.
Last week, As per reports from Bloomberg, Apple Inc. (NASDAQ:AAPL) is considering to include Baidu.com, Inc.’s (ADR)(NASDAQ:BIDU) search engine on iPhones in China in order to expand its footprint in the world’s most-populous nation.
The announcement is expected to be made by the next week as per the report. Apple is holding its annual developers conference in San Francisco starting June 11. Apple is holding its annual developers conference in San Francisco starting June 11.
Baidu holds 80% of the total china’s internet search markets, which should a plus point for Apple Inc to leverage its iPhone. It also gives users an alternative to Google Inc., which competes with Apple in the market for mobile software and advertising.
China’s growing middle class has more income to spend on smartphones and is becoming a more alluring audience for advertisers. China accounted for 20 percent of Apple’s sales last quarter and Cook has said there’s “a lot more opportunity” there as the company rolls out new products and adds new distributors of the iPhone.
The reports further stated that, while customers will have the option to select Baidu as their main vehicle for searching the Web, Google’s product will probably remain the default choice. At present, users of iPhones and iPads in China can access Baidu search by downloading it separately as an application.