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Business News
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Apple to get share of advertising revenue generated by Baidu searches
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Posted online: Sunday, June 17, 2012 at 1:40:53 PM
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London, June 17 : Software giant Apple will be getting a share of advertising revenue, generated by searches using China's Baidu service.
The revenue-sharing deal is a result of an upgrade to iOS, which sees Baidu used as the default search engine on Apple gadgets sold in China.
According to the BBc, the iOS 6 update applies to both iPad tablet computers and iPhones.
The move is widely seen as a snub to Google and a key plank in Apple's plans to improve its market share on the Chinese mainland, the report said.
Baidu is the dominant search firm in China and about 80 percent of the searches done in the country take place via its site, but how much cash Apple can expect from the deal has not been revealed.
About 20 percent of Apple's sales were generated in China in the firm's last quarter, as the firm is keen to improve its standing among China's increasingly affluent middle-class.
"IPhone users are China's elite," said independent analyst Bill Bishop.
"This is good for Baidu though it is not really clear Apple had much choice. Google search is unreliable in China and other Chinese search engines still do not offer a good user experience," he added.
Source-ANI
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