Webscale Playbook: Baidu, 2018 - R&D Binge to Continue as Baidu Banks on Long-Term Bets in AI and Autonomous Vehicles for Competitive Edge - ResearchAndMarkets.com

The "Webscale Playbook: Baidu" report has been added to ResearchAndMarkets.com's offering.

The objective of this report is to assess Baidu's:

• Latest quarterly key performance indicators including revenues, capex, opex, R&D, etc.
• Top 3 spending-related (capex and R&D) priorities
• Network vendor relationships, M&A, and partnerships across different network product categories
• Network-related strategy
• Disruptive impact on the network infrastructure market

Baidu, often referred to as China's Google, is embarking on a new journey to pursue growth outside its core search and advertising business. That's vital as the online advertising business is maturing, yet Baidu continues to rely heavily on it (80% of 2017 revenues). Adding to the woes is the increased rivalry from local peers, Alibaba and Tencent, in the core advertising and online content segments, tied with macro-economic risks arising from rigid ad-related policies/regulations and US-China trade war. These factors have thumped Baidu's 4Q18 topline guidance.

Fortunately, Baidu realizes its position, and is already channeling greater focus on newer sustainable markets that include AI (DuerOS-powered smart devices, smart cities, blockchain) and autonomous vehicles (Apollo program, driverless vehicles). The company is also on a non-core divestiture spree aimed at freeing up money and resources for these newer markets. As Baidu builds its portfolio of new markets, the company's R&D outlays have held steady at around 15% of revenues since 2015.

Below are a few highlights from the report:

• Baidu has been spending more on R&D than capex, as it ramps up its pursuits in AI and connected cars. Capex spend, currently 7% of revenues, is likely to remain well below 10% as Baidu prioritizes research activities and relies on partners for much of its cloud infrastructure.
• Baidu's open-source platform for autonomous vehicles, Apollo, is key to its long-term success as it builds out an extensive web of partners for the platform; that includes more than 100 auto and tech firms, such as Ford, Microsoft, NVIDIA, Intel, and Bosch.
• Baidu is also developing its own AI chip (Kunlun) and building cloud capabilities to support its AI-driven businesses, particularly autonomous vehicles.

Topics Covered

1. Latest earnings takeaways

2. Revenue analysis

3. Capex & R&D: Spend analysis

4. Baidu's project Apollo

5. Baidu's funding in AV startups

6. Other key spending avenues

7. Key technology relationships

8. Baidu's network strategy

List of Exhibits

• Baidu Revenues: 2Q17-3Q18
• YoY Growth Rate (CAPEX vs OPEX): 2Q17-3Q18
• Profitability Margins: 2Q17-3Q18
• Revenues (Annualized & Single Quarter), & YoY Growth
• FY2017 Revenue Split
  
• Annualized Capex and R&D, % Revenues
• Baidu's annualized share of WNO network & IT capex

Companies Mentioned

• Alibaba
• Alphabet
• Amazon
• Apple
• Baidu
• Facebook
• Microsoft
• Tencent
• Ford
• Microsoft
• NVIDIA
• Intel
• Bosch
• Du Xiaoman Financial
• Blackberry
• Waymo
• Velodyne LiDAR
• BMW
• iDriverPlus
• SmarterEye
• NIO
• Hesai Tech
• ZTE
• China Telecom
• Xilinx
• AMD

For more information about this report visit https://www.researchandmarkets.com/research/dnw3dr/webscale?w=4

View source version on businesswire.com: https://www.businesswire.com/news/home/20190212005528/en/