Can ex-Huawei executive help ByteDance crack the tough smartphone market?
- The Beijing-based company was valued at US$75 billion in its latest fundraising round, giving it the title of world’s most valuable privately backed start-up
Diehard fans of short video app TikTok – known as Douyin in mainland China – may soon have a new smartphone option tailored to their streaming lifestyle.
Seven months after ByteDance acquired patents from Chinese niche phone maker Smartisan, the developer of the ubiquitous TikTok is now one step closer to launching its own smartphone.
A company spokeswoman on Monday confirmed a report in the country’s financial news outlet Caijing about the ongoing development, adding that the new phone is “a continuation” of Smartisan’s planned offering.
The move is seen as bold even for China’s aggressive internet companies, most of which focus on hardware with lower entry barriers such as smart speakers and cable boxes, while shunning smartphones which demand heavier expenditures in research and marketing, according to analysts.
“Gateways that can bring in more users and increase their stickiness are always high priorities for internet companies, and smartphones so far remain the most important access among all,” said James Yan, research director at Hong Kong-based Counterpoint Technology.
“Cashed up, ByteDance wants to probe the possibility and give it a crack,” he said, adding that it would require spending of at least 1 to 5 billion yuan (US$145 million to US$725 million) on an annual marketing campaign alone, a common budget range for the country’s top 10 smartphone vendors.