Apple and Baidu: Google Fighters


The following video is part of our "Motley Fool Conversations" series, in which Chief Technology Officer Jeremy Phillips and senior technology analyst Eric Bleeker discuss topics around the investing world.

Apple's Worldwide Developer Conference is coming up, and the rumors surrounding what's in store are getting hotter. One particular report of interest is that Apple will possibly be making Baidu the default search engine within China. Baidu has more than 80% market share in China, which is also Apple's second largest market -- so such a move would make sense. The move could potentially surprise investors, since Baidu recently announced its own smartphone operating system, but both companies face a common enemy in Google.

For Baidu, it'd secure a device with low market share, but it would also secure customers who use their devices at outsized rates. With Baidu already the default search engine on 80% of branded Android phones in China, a tie-in with Apple would mean its mobile presence is now equal to its dominating desktop market share. For Apple, the move's a no-brainer. The Chinese use Baidu the most, so a high-end phone like the iPhone should offer the service most local users prefer.

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At the time thisarticle was published Eric Bleekerand Jeremy Phillips have no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Baidu, and Google.Motley Fool newsletter services recommendApple, Baidu, and Google. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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