China: as many internet users as the US (YHOO) (GOOG) (MSFT) (SINA) (BIDU)
Posted by: admin in Industry News
Filed under: Forecasts, Industry, Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), China
It was bound to happen sooner of later. Growth of new internet users in the US has slowed. Growth in China is robust. As of February, the big Asian nation now has a many people online as America does. Both countries have about 221 people using the internet.
According to the AP “China’s February figure for Internet users was a 61 percent jump over the 137 million people online reported by the government at the start of 2007.”
Who cares? US internet companies for one. With China’s audience so huge and growing, the next battle for web users in moving quickly to the mainland with companies like Google (NASDAQ:GOOG), Yahoo! (NASDAQ:YHOO), and Microsoft (NASDAQ:MSFT) understanding that much of their future revenue prospects will have to come in the world most populated country. Online activity in the US and Europe is close to its saturation points.
The challenge in China is that leading local companies there like Baidu (NASDAQ:BIDU) and Sina (NASDAQ:SINA) are already control much of the market. They are not likely to give up any of that share with out considerable fighting.
The Chinese market may hold the key to ongoing revenue growth for US internet companies, but, if they cannot find a big foothold there, it is a sign that their long-term growth prospects may be stunted.
Douglas A. McIntyre is an editor at 247wallst.com.
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