Are Apple and Baidu About to Team Up on Google?

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There's plenty of evidence that Apple (NAS: AAPL) is putting a lot of emphasis on China, and for good reason, too. CEO Tim Cook recently called it the company's "fastest growing major region by far," adding that Greater China contributed 12% of revenue in fiscal 2011, up from just 2% in fiscal 2009. That came out to more than $13 billion in sales for the year.

Apple has been working to integrate various popular Chinese Internet services into its different operating systems as a way to broaden its appeal within China. The Mac maker recently released a preview of its next major operating system, OS X 10.8, Mountain Lion, which included OS-level integration of popular services such as dominant search engine Baidu (NAS: BIDU) .

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Source: Apple. OS X Mountain Lion Sneak Peek Features.


Source: Apple. OS X Mountain Lion Sneak Peek Features.

Popular video-sharing sites Youku (NAS: YOKU) and Tudou, which happen to be trying to tie the knot, are getting similar treatment. SINA (NAS: SINA) is also making the cut with integration of its Twitter-esque Weibo microblogging service.

Supporting these services might not be limited to OS X, as CNET is reporting that Apple's mobile iOS is also set to include Baidu integration as the default search engine. That would displace Google's (NAS: GOOG) current default spot, which makes sense since Baidu garners a market share within the country that resembles Google's stateside claim.

Baidu's market share is estimated at 78.3% in China, dominating Google's roughly 16.7% pie slice. That's even more domination than Google enjoys here in the U.S., with recent comScore figures pegging Big G's domestic market share at 66.4%.

Considering iOS recently integrated Twitter in the U.S., I wouldn't be too surprised if SINA's Weibo eventually gets iOS integration as well.

Two years after throwing in the towel over censorship issues with the Chinese government, Google is trying to crack back in to the Chinese search market. Android has been putting up strong growth in the region, so naturally Google wants to take another shot at search.

While the iPhone's Chinese market share still lags Samsung's by a wide margin, it's bound to grow as Apple continues to expand carrier partnerships. If Baidu gets some special treatment along with expanding iPhone market share, that could be a big hurdle for Big G.

Emerging markets are enormous opportunities for investors, but China is hardly the only one. In fact, The Motley Fool's Top Stock of 2012 is set to capitalize on emerging-market growth, but in a region on the other side of the world. This company is riding the retail growth in Latin America, and it uses a familiar business model that we all know and love. Get the 100% free report now.

At the time this article was published Fool contributorEvan Niuowns shares of Apple, but he holds no other position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool owns shares of Google and Apple.Motley Fool newsletter serviceshave recommended buying shares of SINA, Apple, Google, and Baidu and creating a bull call spread position in Apple. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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