Qihoo 360 Technology Co Ltd May Halt Baidu’s Rapid Growth

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Qihoo 360 Technology Co Ltd May Halt Baidu’s Rapid Growth

Chinese Internet giants Qihoo 360 Technology Co Ltd (NYSE:QIHU) and Baidu Inc (ADR) (NASDAQ:BIDU) have turned into fierce rivals. Qihoo started making an impact into Baidu’s stronghold, the search business. Baidu is now aggressively expanding its business into other categories, including the security software market which is dominated by Qihoo. While the “Google of China” is yet to make a dent in Qihoo’s territory, Qihoo is rapidly eating into Baidu’s search market share.

Qihoo eating into Baidu’s search market share

According to Chinese research firm CNZZ, Qihoo has increased its search market share from 10.4% in December 2012 to 24.9% today. In the same period, Baidu’s share has shrunk from 71.7% to 58.3%. The Internet security giant is currently indulged into a spending war with its rival to capture a larger share of the Chinese PCs and mobile devices. Baidu’s market share could shrink further as its rival continues to make more moves in the search business.

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