Schmidt says Google will do better in China

Google will do better in China, the company's top executive said Thursday.

Google will do better in China, but don't look for the company to dominate the market anytime soon, the company's top executive said Thursday.

"Although it does not appear we are number one in the market, it looks like we are now in a situation where we are quite competitive," Eric Schmidt, Google's chairman and CEO, told investors during a conference call.

Google has invested heavily in China, setting up R&D centers and developing a search engine that censors results that government officials aren't likely to approve of. But despite Google's best efforts and the hiring of former Microsoft executive Kai-fu Lee to lead its Chinese operations, the company trails far behind local rival Baidu.com.

Google is the sixth most-visited Web site in China, with 4.4 percent of respondents choosing the search engine as the site they visit most often, according to an IDC survey released earlier this year. By comparison, Baidu ranked third, with 11.2 percent of respondents saying they visit the Chinese search engine more than any other site.

Baidu also has a strong lead over Google in China's online advertising market, with a 16.5 percent share of the market in 2006, IDC said. Baidu earned US$105.2 million from online ads in 2006, making it the number two player in the market behind Sina Corp., which runs China's top Internet portal.

Google China ranked sixth in the country's online advertising market, with revenue of US$38.7 million and a 6.1 percent share of the market, IDC said.

Despite trailing behind its main rival, Google is upbeat about its prospects in China. Speaking to investors on Thursday, Google CFO George Reyes said the company's growth rate in China was "healthy."

Schmidt said Google has a strong team in China and offers Chinese search capabilities that match or exceed those of its rivals.

"It's a very good start and although we don't think that this will result in an immediate huge success, we think that the tenacity of Google ... will bring significant victories in China over the next few years," he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?