TikTok parent’s company is planning to make their own smartphone

Who hasn't heard about TikTok? It is one the most popular streaming apps right now. Its parent's company - a Chinese IT firm is planning to take a step into the smartphone manufacturing industry as well. ByteDance, whose $75 Billion valuation ranks it one of the world's biggest start-up plans to launch a phone pre-loaded with its own apps - which include newsfeeds, video and gaming apps to reach out more global audience. This move is seen by many as an initiative by Chinese companies to rely on their own services, software, and hardware after the US ban. ByteDance is one of very few companies from china who has global audience in Asia and west, other than its home country.

Earlier than this, Amazon has tried similar effort but it was pulled a year after launch due to its disaster failure. Analysts predict ByteDance phone could have a similar outcome. Analyst Jia Mo said, there is basically no space for them in the mass market. They lack experience and advantage in supply chain, in channels, so their likelihood of being successful is very low, he further added. If they target only the niche market, may be they have a chance by attracting niche customer groups through certain pre-installed software.

Bytedance's own international expansion has helped the company to acquire its lip-syncing Musical.ly app in 2017. But despite racking up huge number of downloads- it was fined by the Federal trade commission for illegally collecting personal information from users younger than 18 years. Wang Xi, research manager said that may be they could have a chance if they offer something new and at lower price. He said, So if they really will go down this path, I think they will probably let hardware lose money in the beginning and try to make up through their service later.