Baidu to launch Android phone
If the Chinese search giant's platform takes off, it could drive significant mobile search volume for the company.
The new smartphone may be manufactured by Foxconn and be Baidu-branded. Baidu has already launched some smartphones with partners like Dell, which run on the Yi OS.
China has seen its mobile Internet penetration increase rapidly in the past couple of years. We expect the growth to continue going forward, and lead to a steady increase in the Chinese mobile advertising market.
Baidu will compete with the likes of Google (GOOG), Apple (AAPL) and Microsoft (MSFT) in the Chinese smartphone market. (Microsoft owns and publishes Top Stocks, an MSN Money site.) By launching its own platform targeted specifically at the Chinese demographic, and integrating it with all of its online services, Baidu is hoping to expand its user base by leveraging the growing smartphone penetration and eventually monetize it through mobile advertising or something else.
Baidu is also in talks with global handset manufacturers to make smartphones powered by Baidu Yi, for the Chinese market. If Baidu's platform takes off, it could drive significant mobile search volume for Baidu, and further increase its search market share in China, just as we project. You can check out any impact in its online search market share using the chart above.
We currently have a $127 Trefis price estimate for Baidu, which stands 2% above its market price. Search advertising accounts for a significant portion of its overall value.
More from Trefis
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Try as the bears might, they couldn't break U.S. stocks. But investors still face frothy prices and considerable headwinds.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.