Why is TikTok owner ByteDance making phones?

Software companies have tried and failed to sell handsets, but the Chinese giant might have bigger plans

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Published: 4:00am, 6 Nov 2019Updated: 5:07am, 6 Nov 2019

This article originally appeared on ABACUS

From the HTC Facebook phone to the Amazon Fire Phone, software companies -- perhaps with the exception of Google -- have tried and failed to crack the smartphone market. But this dismal track record isn’t stopping ByteDance from trying.

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The TikTok owner just put out its first smartphone in China, following a deal that saw the social giant acquire patents and staffers from struggling phone maker Smartisan.

It’s a tough time to launch a new phone, especially from a brand like Smartisan, which doesn’t have a massive fan base to begin with. For smartphone companies, the Chinese market is notoriously cutthroat. The top five players make up more than 90% of the market, leaving smaller manufacturers scrambling to survive. That tough competition has already resulted in plenty of casualties.

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ByteDance, though, seems to have spare cash to make a bold bet. The company received US$1.3 billion in its latest fundraising round. This year, it also snapped up AI music startup Jukedeck.

ByteDance’s first smartphone carries the Smartisan brand. (Picture: Smartisan)

Making its own phone could be one (expensive) way for ByteDance to create a testing ground for its own apps. The new Smartisan phone has shortcuts to bring up Douyin, the Chinese version of TikTok, and lets you apply TikTok filters and effects on videos.

A TikTok makeover, though, won’t necessarily endear users to the new phone. As past experiences have shown, attempts to change how users interact with their phones can be risky.