Google drops two low demand online services in China: report

July 21, 2010 2:44 PM EDT

Faced with low demand for two of its online services, Google Inc plans to shut down those sites and stop technical support, said a media report from Chinadaily.

The reshuffling activity comes after 10 days its license got renewed by the Chinese government.

The two online services included website ranking page and a lifestyle site in China. The decision was made because of "lower-than-expected demand,” said Chinadaily quoting a posting from Google on its Chinese-language site.

"In China, the website ranking page and lifestyle site were not welcomed by our users, that's why we decided to shut them down," the report said.

Besides, it also ends technical support to Tianya.cn this week. Tianya.cn used its technologies for two online services. Other Google services will continue without any disruption.

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"It's reasonable for Google to shrink its services as the two (services) didn't contribute much to its bottom line," yet they ate up manpower and capital, said Li Zhi, analyst, Analysys International, to Chinadaily .

She also said that shutting of these services will have a negligible impact on the Google in China as they are low demanded services.

In the second quarter, Google's share declined to 27.3 percent from 29.5 percent in the first quarter even though overall search market increased by 53.2 percent.

Baidu Inc., the No: 1 search engine in China, was able to raise its market share to 70.8 percent in the second quarter from 67.8 in the previous quarter.

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