Switzerland credits: Baidu cooperation with Symbian faces challenges
Switzerland credit issued a report today, although Baidu cooperation with Symbian, might a major breakthrough on the mobile Internet, but still faces many challenges. While Switzerland credit points out that, thanks to rising keyword prices, Baidu will be better than expected second-quarter results.
Following is a summary of the report:
June 8, Baidu announced a cooperation agreement with Symbian Association, to promote wireless “box computing” technology development and integration of platforms on the Symbian platform. Symbian Association to Baidu “box computing” provides the appropriate application programming interface (API), and Baidu will centralize all applications from Symbian platform developers. In addition, both parties will work together to face the terminal manufacturers and carriers based on the “box computing” platform of complete solutions.
In August 2009, Baidu first proposed the “box computing” concept, the platform can provide or link to all the network applications and services. Therefore, in the long term, Baidu is expected to be calculated from the box of service similar to Apple’s app store. Through cooperation with the Association of Symbian, Baidu seems to have a major breakthrough in mobile Internet because 2009 Symbian OS mobile global smartphone users 74.9%. However, Baidu in the field of mobile Internet is expected to be under challenge:
1) Symbian change route remains unknown: we consider the upcoming Symbian`3 (mid 2010 launch) and Symbian`4 (late 2010 launch) expectations remain high. Moreover user program interface (a UI) and OS features overall improvements still slow.
2) limited hardware support: major Symbian mobile phone vendors, Sony Ericsson recognizes challenges that platform exists, Samsung has been moving away from Symbian. The other hand, most of the domestic mobile phone/Tablet PC manufacturers seem to have support for the Android platform.
3) Nokia began promoting the new MeeGo operating system: Symbian platform is the main provider, Nokia’s MeeGo has developed a new operating system.
4) and the weakening of iOS and Android: Baidu cooperation with Symbian may mean weakened to iOS and Android support. Baidu only iOS and Android developed a software application, respectively, which is now the lowest of all major Internet companies.
Second-quarter results exceeding expectations
After communication with the dealers and agents of all, we expect Baidu revenue in the second quarter will be 6% higher than previously forecast, suggests that second-quarter customer revenue per user (ARPU) increase 40%, at the same time the new customer ARPU reached 3,000 yuan. We believe that performance exceeded expectations of a key reason is that prices rose sharply. Switching to “Phoenix nest” after the system, we realized that Baidu keywords at about 250 species. We November 2009 through July 2010 sampling survey of keywords and price comparison found that average price increase around 300% 58% keyword prices doubled. In the Phoenix nest, under system, in our sample, highest per click keywords cost more than 70 million.
In anticipation of rising keyword prices, we respectively Baidu in 2010 and 2011 earnings per share are expected to increase and 4%. Our price target increased from $ 57 to $ 58.7. Baidu is 50 times times current earnings. We maintain the unit “underperform” rating, because we believe that independent search engines such as Baidu to benefit through the development of mobile Internet.
Text/NetEase technology