Regarding the censorship issues in the mainland China, Google decided to move to Hong Kong with the name Google Hong Kong and started redirecting search queries from google China to Google Hong Kong. Google China changed from google.com.cn to google.com.hk and provided uncensored Chinese search results. China being a massive country with a huge population of 1.357 billion, has almost 386 million android active android users. The ban of Google without a doubt was a huge setback for Google from the monetary point of view.
With a great number of non-google certified apps in the Chinese market, the security issue is a great threat. This aspect leads to the impression that android might not be less than a nightmare when it comes to security. This impression can cause great harm to Google because Google generates a whole lot of revenues from its apps on Google play as well as YouTube (monetized with ads). Google has started negotiations with the Chinese government to start over once again in China.
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Google’s search rivals Baidu and Soso have benefited a great deal from the absence of Google in China. Although, Android phones occupy almost 75% of Chinese mobile market, Google has been facing huge losses since its pull-out in the year 2010. Google has not been able to generate revenues over there in China and is therefore looking to start again. Even Google is trying to talk with local developers and also the mobile phone companies to have Google Play pre-installed on their devices.
Most of us have might have never imagine android phone without Google Play, however, Chinese have a very little exposure to the brand named Google. There still are a large number of people who are familiar with Google and want to use it. If Google manages to start again in China, it would face a great challenge by the already established marketplaces like ‘Baidu Mobile Assistant’ and ‘Myapp’ etc. However, Google is way better than the local markets when it comes to security, which would make people think about it and Google, ultimately can have a big shot at success.
Google has a lot to gain in China that has a population of 1.357 billion and about 386 million android users. If Google manages to convince the Chinese government, it might have a huge impact on its revenues. Google will gain new customers and might launch new apps for the Chinese. With the approval of Google in China, Android’s reputation will get better throughout China; malware protection is a serious issue there.
Google’s major revenues come from search engine and YouTube (almost 90%) whereas Google play generates only 10% of Google’s revenue. However, China being a massive mobile phone market, will definitely help grow the customers and ultimately add to the revenues. Google is in talks with local companies like ZTE and Huawei to serve as carriers, if the Chinese government and Google come to an agreement. It is still unclear whether the people will like the idea of Google being introduced there or will continue to be loyal to their local service or app providers.