Baidu to share ad revenue with Apple under iPhone deal

Chinese search giant says Cupertino will be entitled to share of advertising sales after its search engine was added as part of iOS software upgrade for China, report says.

Chinese search giant Baidu says Apple will be entitled to a cut of advertising revenue, after its search engine was added by Cupertino as part of a software upgrade for iPhones in China, a report says.

In a Bloomberg article Friday, Wang Jing, vice president at Baidu, said that the revenue-sharing agreement with Apple follows similar deals between his company and manufacturers of handsets that use Google's Android operating system. Financial details of the deal were not disclosed.

Apple had confirmed earlier this week that it would offer Baidu's search engine under the iOS 6 upgrade for users in China. Consumers can currently access Baidu's services via a native app on Apple's App Store. The upgrade will also include Chinese-language support for Apple's Siri voice technology.

Wang noted that Baidu, which fields about 80 percent of China's Web searches, was prepared to run up costs to add smartphone users by offering services such as music streaming for free, according to Bloomberg.

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