Even though a company spokesperson declined to comment on the matter, the development is hardly a surprise as smartphone pre-installs have always been a popular way for Chinese Internet companies to ramp up user sizes, TechCrunch reported on Monday. Even, there is no words for the launching date of this phone, although founder Zhang Yiming had supposedly "long dreamt" of a phone, according to one source.
ByteDance hasn't made any official announcement so far, but its decision to develop a handset of its own may have stemmed from the fact that Chinese tech companies are increasingly finding it hard to do business with the West, especially in the USA, as concerns around data privacy continue to grow. This set of assets could help the company develop its new smartphone. However, none have achieved remarkable success: Both Facebook and Amazon stopped making their own phones, and Meitu sold its smartphone business to major Chinese smartphone maker Xiaomi previous year. Analysts predict that Bytedance faces a similar fate for several reasons.
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However, ByteDance did make a deal with phone maker Smartisan earlier this year, saying that it had hired some Smartisan employees and a patent portfolio, but back then ByteDance claimed the deal was to explore the education business. Tech giant, Huawei, has been banned by the US Department of Commerce, encouraging Microsoft and Google to cut ties with it also.
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Wang Xi, research manager at data consultancy IDC China, said the competitive domestic hardware market meant any newcomer would have to woo users with low prices and must-have content. However, if the company has a good fan following, it might turn the users as their valued customers which is somehow managed with Bytedance.