Qihoo has been very active lately, with its new plans to create a smart home system, and with its powerful antivirus suite 360 Total Security there are a lot of things on its plate. Now the tech giant wants to move into mobile app development for children that are in K-12.
The joint venture between Qihoo and Xueda Education Group plans to compete with Tencent in the mobile app market by creating apps to help educate children in kindergarten through the twelfth grade. There is a lot of monetary gain here as the market is new and emerging and there are not a lot of competitors in there yet, sure there are services such as Google Classroom but none that are capable of being used by the touch of their finger.
At first this might seem a waste of effort since the social media giant Tencent has already entered and has gained a respectable amount of users, Qihoo has already been targeting children with the creation of 360 Kids Guard Smart Watch. It would be a smart move to see Qihoo enter the marketplace and to knock out any potential competition so long as it is able to make it appealing to parents. Students in higher level education such as 10-12th will find no real use for this but if Qihoo can prove that their apps are beneficial than they will be able to draw in parents to their products and thus make the kids familiar with the Qihoo atmosphere.
Both Xueda and Qihoo have seen rather disappointing first quarter profits despite the fact that Qihoo was fairly strong in earnings investors still tend to undervalue the company. Whatever the reason is behind this Qihoo does need to diversify its reach as it is already overlapping with the likes of Baidu and Tencent.
If all goes well we might see some love from investors when it comes to Qihoo.