TikTok Developer Bytedance Now Wants To Build Its Own Smartphones It Can Preload The App On

Bytedance is currently one of the world's most valuable startups, and all thanks to a little short video sharing app called TikTok.

Now, after experimenting with other apps as well, the Beijing-based startup has decided it wants to make a foray into hardware too.

Images courtesy: Reuters

According to reports, Bytedance is planning to develop its own smartphone now. Two sources told Financial Times as much, though a spokesperson declined to comment. Then again the idea is not that far-fetched, given that one way Chinese companies bump up app user numbers is by getting them pre-installed on smartphones in the country.

This isn't even the first time something like this has happened. Meitu also used to be primarily an app developer, before beginning to make its own smartphones. In fact, the company recently sold its hardware arm to Xiaomi last year, which has no problem preloading apps, and also focuses on younger users with a passion for selfies.

There's also urgency from Bytedance to carve out more user acquisition channels. After a few years of frantic growth, Bytedance failed to hit its revenue target for the first time last year amid slowing ad spending in China, according to a report by Bloomberg.

Similarly, other Chinese tech giants like Baidu, Alibab, and Tencent, all worked on their own custom Android ROMS at different times in the past. Alibaba in fact was also responsible for a $590 investment in Meitu back in 2016, to develop an OS for their handsets. More recently, mobile games publisher Tencent has teamed up with the gaming-focused Razor smartphone.

Of course, Bytedance will have their work cut out for them given the stiff competition in the budget Android market that originates in China, between the likes of Xiaomi, VIvo, Oppo, and Huawei. There's also the new US-China trade war to be worried about. Though only Huawei has been directly hit by Trump's trade regulations in the run up to a sit-down, other Chinese manufacturers have got to be wary as well.

That aside though, Chinese smartphone makers do have a potentially huge market opportunity in India, and Bytedance is no different. It will still however be facing the same stiff competition as back home.