Moscow, may 28 — “News. Economy” Chinese company ByteDance, which owns the popular video service TikTok, decided to create its own smartphone, reports the Financial Times, citing two sources familiar with the project.
The company plans to preinstall the mobile app TikTok, including news, video, and games. In ByteDance thereby hope to increase sales. Yet there is no information about the design of future devices, and what market the company will promote it.
According to the FT, CEO ByteDance Zhang Institute have long considered the possibility of creating its own smartphone with a set of preinstalled applications. Earlier this year, the company ByteDance entered into an agreement with smartphone maker Smartisan, after which it was announced about the purchase of the patent portfolio, as well as hiring a certain number of employees of the Smartisan.
Interviewed by the newspaper analysts believe that the development of ByteDance is unlikely to expect success similar projects with Amazon and Facebook at the time, failed. Experts pointed out that such devices have no place in the mass market, and most of the ByteDance no experience in the development of devices, and established sales channels of their gadgets.
Also, not so long ago, the service TikTok faced problems in India, where the app has become quite popular, but was for some time prohibited by the authorities due to the promotion of “cultural degradation”.
It is of concern and a trade war between the US and China, which has already led to problems for the largest manufacturer of smartphones in the world — China’s Huawei, which Google has closed access to their services, with the exception of the Android operating system. To the ByteDance the American authorities have claims company suspected of illegally collecting personal data of children, writes the FT.
However, if the popularity of the TikTok will be the driver of interest to the smartphone, the company has the potential to create its own ecosystem of social networks. Facebook is trying to do the same, combining elements of Instagram, WhatsApp and Facebook Messenger into a single powerful platform for the exchange of messages, but in the hardware segment, things don’t go smoothly. It is also believed that Facebook is bad it turns out to attract a younger audience to their main app.
This does not mean that ByteDance will be easy to transform the global popularity of its application in consumer demand for the phone. Also Snapchat is an extremely popular app among young people, and his attempts to enter the hardware market is still not successful. ByteDance can also learn from unsuccessful attempts Facebook to do a smartphone in 2013.
ByteDance already has a successful ecosystem of applications, particularly outside the Western markets. ByteDance seems to have plans to integrate a full list of apps in their smartphones. This may include not only TikTok, but also a popular aggregator of content Toutiao and its collaborative tool Lark. The set of applications ByteDance still being formed, but existing services are already extremely popular outside Western markets.
For example, in India TikTok is the most downloaded app to date, and ByteDance news app Helo fourth on downloads. From Facebook WhatsApp — second on downloads app and Messenger — eighth.
ByteDance is one of the largest startups in the world, the company is estimated at $75 billion In February, the number of downloads TikTok exceeded 1 billion Earlier Bloomberg, citing sources, reported that ByteDance is developing a music service, which should become a potential competitor to Spotify and the Apple Music. Its launch is scheduled for autumn.
ByteDance going to submit a new application in the fall of 2019. It will run mostly in poor countries where paid music services are not yet popular, according to the interlocutors of the Agency. The new application will not be complete copy Spotify or Apple Music. ByteDance already acquired the rights to two major Indian label — T-Series and Times Music, told the leaders of these companies.
According to TechCrunch, the app will have both free and paid versions. It can be launched at the end of June 2019, sources say the publication. As a key market for the new service ByteDance considering India.
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