Dell, Baidu Tie Up to Launch Tablets, Phones in China
U.S. PC giant Dell hopes to gain an edge in China by launching tablet PCs and mobile phones using Baidu Yi, Baidu’s own version of Google’s Android platform. The new mobile devices are slated to go on sale by November, according to PCmag.
The tieup aims to make Dell more appealing to China’s 900 million mobile phone users. Dell’s China sales jumped 22% in Q1 but lags far behind market leaders Lenovo and Apple. Baidu’s commanding share of China’s search market gives its brand caché comparable to that enjoyed by Google in the U.S. The brand has been used by other hardware makers to enjoy a boost in the China market.
Some analysts have questioned whether Dell’s strategy is sound. The company is planning to use the Streak 5 tablet, which has been discontinued in North America, or a similar mini-tablet for its China Baidu launch. Another potential weakness is the fact that Baidu’s operating system is incompatible with Android applications and would have little appeal in other overseas markets, according to ZDnet.
Apple’s China sales surpassed $8 billion last year and has helped the company post record July earnings. Chinese PC maker Lenovo is also pushing tablets with the goal of winning a 20% share of the China market.
Dell hopes to tap Baidu's commanding share of China's search market by launching mobile devices using the Baidu Yi operating system.