In response to Apple’s and Google’s
growing presence in China’s vast mobile Internet market, Microsoft has
announced plans to hire 1000 more employees and also raise research and
development spending by 15 percent.
Around 400 million Chinese surf the
Internet with their mobile phones and other devices and competition for gaining
larger market share is intense. Although Microsoft is ready with its Windows 8
mobile operating system, it has been lagging behind Apple Inc and Google Inc in
the mobile internet space.
Microsoft's
CEO for China, Ralph Haupter has said, "We respect that we have two
players in the market which have a strong role, and we feel ready to attack and
have different offers to basically change the game plan on that one."
According
to Ya-Qin Zhang, Microsoft’s Asia Pacific chairman for Research and
Development, the company will spend $500 million more than last year and that
the research staff currently numbering 3000 will also be expanded by 15
percent.
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China is
the world’s most populous online market and global as well as local companies
are fighting it out to create a significant presence. Recently, China’s very
own Internet search company Baidu Inc, not only launched its own mobile browser
but also said that it has plans to build a cloud computing center.
According
to the China Internet Network Information Center, in July, there were538
million Internet users In China. The number using wireless devices for browsing
form a very significant portion of this, 388 million or 70 percent of the
total.
So
Microsoft has realized that it needs to take some drastic measures. In addition
to hiring more people and investing in Research and development, the Redmond,
Washington based company also plans to hire local partners who will help them
in developing China specific mobile applications.
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