By Li Hongmei

Baidu is looking to tap into the hardware market, according to sources close to the company; this would mark a change from its core strengths which have always been internet searches and web portal services, reports the Chinese-language China Entrepreneur magazine.

As the internet moves from desktop computers to mobile devices, Baidu CEO Robin Li announced at a recent investor conference that the company was aiming to expand its presence in the mobile internet market by focusing on mobile searches, developing apps, location-based services and mobile video services.

Most smartphones run on Google's open-source Android system and the internet company has collaborated with hardware makers of leading brands on smartphones, tablets and now wearable devices. If Baidu wishes to compete with international internet giants, it will need to develop its own hardware devices to tap into the end-user market, the magazine said.

By controlling the market and gaining control of an operating system, hardware suppliers will be able to control the dialogue in the software arena. This is evident in Apple's iOS and App Store and Google's Android.

Wearable devices will be the future of consumer electronics, the magazine said. Companies that have a foothold in software, such as cloud computing services, and hardware such as smart bracelets are likely to enjoy a strong revenue base.

Hardware sales usually generate more revenue than software, the magazine added. Many application developers have made money with their apps but the amount has been samll when compared with the revenue generated by iPhones and iPads.

The magazine suggested it would be best for Baidu to tap into the wearable devices market as this market is still relatively new. It also suggested Baidu develop a voice recognition service to enable the easy use of devices, such as a smart watch or devices similar to Google Glass.