Baidu has
maintained its dominant position in the Chinese search market with a share three
times that of its closest rival,
Google,
according to new research.
Baidu actually increased its lead in the first quarter of the year, gaining
3.5 per cent to take 57 per cent of the market, according to China-based
research firm
Analysys
International.
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The company reported a 143 per cent year-on-year increase in profit in the
first quarter, with a net income of $11.1m. Revenue doubled to $35m.
Baidu has successfully expanded its secondary services as well as its basic
search and advertising operations.
"Our community-based products, including Baidu Knows, Baidu Space and Baidu
Encyclopedia, are among our fastest growing and most exciting products," said
chief executive Robin Li.
"Baidu Knows has about 15 million answers for users' questions, and the
number of Baidu Space users almost doubled during the first quarter."
Baidu Encyclopedia is a Chinese service similar to
Wikipedia,
while the Baidu Space community site is sometimes compared to
MySpace.
Baidu released its latest earnings figures days after learning that Google
China had won a major advertising sales contract for more than 400 websites
operated by
China
Telecom.
China Telecom is the country's incumbent fixed line phone and broadband
internet service provider.
Despite this win for Google, seen as significant by analysts, no other firm
appears close to challenging Baidu's lead in Chinese search market share.
Google holds 18.7 per cent of the market, according to Analysys, while
Yahoo
has 13.6 per cent.
The rapidly expanding Baidu recruited new staff at an average rate of more
than 250 per month over the past quarter.
The company now has almost 4,000 employees, about 70 per cent of whom are in
advertising sales and marketing, according to Li.
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