Baidu overtakes Google to become number 2 in worldwide smart speaker market
Guess what? Chinese internet giant Baidu has just hit a major milestone, surpassing Google’s sales of smart speakers and propelling itself into the number two position globally! A new report from Canalys says that Baidu overtook Google in the second quarter of this year, making 4.5 million shipments. That puts Baidu’s global market share at 17.3% - second only to Amazon, which has a global market share of just over 25% (6.6 million shipments in the second quarter).
It’s been a good month for Baidu, which has seen its share price increase by 5%
Source: Yahoo Finance
Since expanding into lower price points, Baidu has rocketed forwards in the smart speaker industry. In the first quarter of the year, it overtook previous Chinese market leader Alibaba. In the second quarter, it logged year on year growth of 3,700%! How much more is there to capture?
There are three things worth noting. The first is that Baidu isn’t even really a global player – its sales are confined to China. However, in regards to that, the second point is also worth noting: the Chinese market has been notoriously slow to adapt to smart speakers – now, that’s changing. A fact that bodes well for the domestic market leader. The third point also plays into Baidu’s favour: as China continues to extend its infrastructure beyond its borders, Asia is increasingly becoming a playground for Chinese firms that want to expand into international territories where they have a cultural advantage over western counterparts. If Baidu wants to own the Asian smart speaker market, there’s every possibility it can do so with relative ease.
Dominion holds Baidu in its Global Trends Managed Fund.
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