Chinese search giant Baidu.com Inc. (NASDAQ:BIDU) is poised to launch a low-cost smartphone running its newest mobile operating software.
The company that dominates internet searches in China is looking to shore up its presence in the growing but increasingly competitive mobile-device field.
Built with home appliance maker Changhong, the low-cost Changhong H5018 is powered by Baidu's own mobile operating system, a variation of Google’s Android.
Analysts say it is extremely important for the company to secure significant presence in the booming mobile industry in China, which has the largest number of smartphone users in the world.
The new smartphone integrates Baidu's cloud computing technology and cloud-based services and applications. Through the device, users can enjoy 100-gigabyte cloud storage and access Baidu services such as a search engine, maps, music and an application store.
Baidu launched its first smartphone in cooperation with Dell Inc. last September, but the device received a muted market response due to its high price and limited sales channels.
A number of other mobile phone manufacturers had been discussing the possibility of adopting Baidu's operating system.
The company had a 78.5 percent share of China's internet search engine market in the first quarter but has a far less influential position in the nation's mobile search engine market.
Baidu had a 34.9 percent share of China's wireless search engine market last year, while Shenzhen-based Easou.com had 21 percent and Soso.com, a mobile search subsidiary under Tencent Holdings Ltd. (0700.HK), brought up the rear with 19.7 percent, according to Analysys International.
Other Chinese internet companies, such as Alibaba Group (1688.HK), Shanda Interactive Entertainment Ltd. (NASDAQ:SNDA) and Qihoo 360 Technology Co. (NYSE:QIHU), have all expressed an interest in chasing the low-end mobile phone market.
Alibaba, which launched its first Aliyun smartphone last July priced at 2,680 yuan, released the second generation of the device priced at 1,499 yuan last month.
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