Chinese tech firms are catching up to their American counterparts in terms of online revenue, according to a study conducted by Strategy Analytics.
In the first half of 2014, Google had the highest online revenue, taking in US$31.4 billion thanks to its wide usage across the globe. Amazon came in second with US$10.3 billion, followed by Facebook and China’s Tencent with US$5.4 billion each.
The fifth spot was clinched by Apple iTunes (US$5.2 billion), followed Chinese search engine Baidu (US$3.4 billion) and Netflix (US$2.6 billion). The global top ten is completed by Yahoo (US$2.2 billion), Yahoo Japan (US$2 billion) and Microsoft Online Services (US$1.9 billion).
Chinese tech firms Baidu and Tencent were the only non-American companies to make the top ten, despite the fact that four of the top ten fastest growing internet firms are from China, noted the market research firm.
In fact, China-based internet security software company Qihoo recorded the fastest revenue growth of the first half of 2014 with a 123 per cent increase. Twitter took the second spot with a growth of 122 per cent, followed by Facebook with 66 per cent and Baidu with 56 per cent. China’s Tencent was ranked seventh, while Chinese media company Sina grabbed the tenth spot.
“The fact that there are about 2.5 times more Chinese than Americans online is a big factor so they’ve been able to hit such heights solely in a domestic market,” said Michael Goodman, Director of Digital Media at Strategy Analytics.
Chinese tech firms are challenging the historical dominance of their US counterparts, but they need to find success outside of the domestic market if they want to maximise profits.