What a Google Exit from China Could Mean for Android
With 360 million Internet users, it's hard to imagine how Google wouldn't be affected by exiting China. Google relies on online advertising and that extends to its Android mobile operating system effort. Analysts from Gartner, Forrester and Enderle Group reflect on how Google's exodus from China could impact sales of Android-based smartphones, such as the Nexus One. Google doesn't have answers either, but said it is meeting with the Chinese government to discuss the broader issues.News Analysis: In the days that followed Google's threat to cease operations in China after it discovered some Gmail accounts had been hacked, many experts mulled what effect the search engine's exit from the country would have on its search business. Some look at Google's current search market share and search revenues in China and say such a move would have little impact. Google's China search share is at 31 percent, and analysts say Google banks about $300 million to $600 million from search advertising in China-between 1 to 2 percent of the company's total revenues.
But it's hard to imagine how Google wouldn't be impacted by leaving China. The country has some 360 million Web users. Google butters its bread online with advertising, and that value proposition extends its Android mobile operating system effort.