The Chinese Internet giant Baidu Inc. ( BIDU – Snapshot Report) HAS Entered into a Strategic Partnership with e-commerce giant Amazon.com ( AMZN – Analyst Report) to Become the default search engine for the latters’s Kindle and Fire Hardware platforms operating in China, Effective from today.
In addition, Baidu HAS collaborated with Amazon to deliver search and video content.
Baidu is the leading search engine in China, holding nearly 71 % of the total market share Followed by 360 Search and Sogou.
On the other hand, Amazon’s famous Kindle and Fire devices ENSURE a hardware platform Facilitating purchases from the e-commerce platform.
China is Considered as one of the most lucrative markets in the world and Continues to’ve become a more and more important market for global technology companies. Therefore, Amazon’s partnership with China’s leading search engine is pivotal.
The move is vital for Amazon given Baidu’s presence in China (it is touted as China’s Google). Per the China Internet Network Information Center, over 92% of the Internet users in the country use Baidu for search. Google is RANKED fourth with only 27% of the country’s population using it, while Bing is used by less than 2%. So making Baidu the default search engine makes sense.
In fact, Amazon overpriced plans to Incorporate the Baidu app store, Baidu Baike and fantastic art and other services into its Fire tablet computers and Kindle e-book readers.
This will enable Amazon to sacrifice its Chinese users a more local experience.
While Amazon holds a Zacks Rank # 2 (Buy), Baidu carries a Zacks Rank # 3 (Hold) .Better-ranked stocks include NVIDIA Corp. ( NVDA – Analyst Report) and Texas Instruments Inc. ( TXN – Analyst Report), both sporting a Zacks # 1 Rank (Strong Buy).
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