The creator of the popular TikTok app, ByteDance, is now planning to expand its business into the smartphone industry following its recently closed deal with Beijing-based manufacturer Smartisan Technology. China's most valuable startup company announced that it will be developing a new smartphone in partnership with Smartisan, which it will be releasing to the public very soon.
The development of the new product is part of the company's plans to expand beyond its video and apps business. ByteDance mentioned in a statement that developing a smartphone had always been a part of its expansion plans from the start. Thanks to its partnership with ByteDance, Smartisan will reportedly be able to restart its earlier smartphone plans initially meant for its user base.
According to reports citing sources close to the matter, the new ByteDance smartphone has apparently been in development for close to seven months already. The reports further indicate that the project is being led by a former executive at Smartisan named Wu Dezhou.
Smartisan is a relatively small player in China's highly competitive smartphone market. The company caters to a select niche of users and is best known for its internet celebrity founder, Lou Yonghao. The company has so far developed and released two devices, namely the Smartisan smartphone and the Smartisan earphone. The company has also developed its own mobile operating system called the Smartisan OS.
The partnership between both companies initially started earlier in the year, when ByteDance reportedly acquired several patents from Smartisan. As part of the deal, some of the employees at Smartisan were transferred to ByteDance. During that time, ByteDance mentioned that the transfers were merely part of the "normal flow of talent."
ByteDance, which was founded in 2012, has become a tech industry juggernaut in China. The Beijing-based company made a name for itself when it launched the popular short-form-video-sharing app TikTok.
The app, more popularly known as Douyin in China, currently boasts a user base of more than 300 million monthly active users. The app, which was launched elsewhere as TikTok, has also become popular in North America and other countries.
The announcement of the future launch of a new smartphone is the latest move by ByteDance to expand its business. The company recently began heavily investing in various sectors outside of social media and mobile apps.
The most recent investment was a partnership with London-based startup Jukedeck, a company that specializes in creating music through the use of artificial intelligence systems.
