Baidu, China’s largest Internet search provider, has launched a searchable applications library which allows third-party apps to be launched directly within its website, for example when a customer searches for a specific product or application category. While the company has yet to announce plans for a similar offering targeting the mobile app market, its strength in the mobile market means it would have a strong base to start from should it do so – the company processes around 34 percent of mobile searches in the country, ahead of local rival Easou.com and third-placed Google. Baidu has also been quick to capitalise on Google’s well-publicised problems in the Chinese market by becoming the mobile search partner of choice for device vendors and operators in the country.

Some critics said that Baidu’s strategy may impact smaller developers, by stopping users from clicking-through from search results when the apps can be accessed directly within the Baidu portal. This is especially true of companies who are either unable or unwilling to work with Baidu, who are likely to find potential customers preferring suppliers given prominence in the search results.

The Wall Street Journal noted that while the Chinese market is not short of developers, in terms of app stores it is hugely fragmented, with many customers using smaller, independent stores and electronics retailers to get mobile apps, and the prevalence of piracy in the country also limiting the potential for sales. It also said that revenue share-terms in China are often less generous than for international markets – although in some cases this is offset by the size of the customer base.

While China Mobile’s app store is widely seen as being among the most successful, many developers have still not embraced it fully. It has already been reported that US vendor Motorola has been able to steal a march on its rivals in the Chinese apps market, in part by positioning itself as the main alternative for Android apps to Google, at the time when Google was having its greatest struggles with the Chinese authorities. Motorola has also benefitted from the strong localisation of its Chinese app retail offerings, including support for the most popular payment methods among the customer base, and from the growing penetration of Android smartphones in the country.