- In China, Honor, Oppo and Xiaomi will have a new competitor
- This is the internet giant Baidu, which is sometimes nicknamed the “Chinese Google”
- This smartphone could take advantage of Baidu’s generative AI (similar to ChatGPT) which it wants to integrate everywhere
The smartphone market is currently not in great shape. Due to the macroeconomic context, global sales are down. And this crisis particularly affects the mid-range and entry-level segments. As a result, Chinese brands with a strong presence in these segments, such as Xiaomi, are particularly affected. However, this is when one of the Chinese internet giants, Baidu, chooses to enter the smartphone market.
As you may already know, in China, Google is not used for internet searches. The Chinese use local services, such as the search engine Baidu, which is one of the tech giants of the Middle Kingdom. In addition to its online services, Baidu already sells connected speakers and displays, similar to those offered by Google and Amazon. And soon, the division of Baidu that sells these speakers will also sell mobiles.
According to a Bloomberg article, this was confirmed by a company representative. And a launch is planned for next week by Baidu, which is often dubbed the “Chinese Google”. But for the moment, we don’t have the details on this future Baidu smartphone, and we don’t know the objectives of the Chinese giant. In any case, it will be an event in the Middle Kingdom. As Bloomberg explains, it’s been a long time since a major Chinese player entered the smartphone market. And it is also the first time that one of the Chinese internet giants has attempted a breakthrough.
A declining Chinese market
But as mentioned above, in addition to the fact that it is already a saturated market, sales are currently down worldwide. And China is no exception. According to data from IDC, smartphone shipments in China fell by 13.2% in 2022. And for the first time in 10 years, the volume of these shipments fell below 300 million units.
A drop that would have been caused by the restrictions on the COVID that China continued to apply in 2022, and by the economic slowdown. Of the top 5 manufacturers, only Honor saw an increase in shipments, while the others (Vivo, Oppo, Apple and Xiaomi) sold fewer smartphones last year. And in the first quarter of 2023, smartphone shipments in China were still down.
The Chinese Google is also thoroughly on AI
In any case, it should be noted that Baidu announces its arrival on the Chinese smartphone market, while it is also trying to find a place among the world players in artificial intelligence. The tech giant has already invested heavily in this area. While ChatGPT continues to generate buzz (and Google is about to launch its AI Bard), Baidu is also working on a Chinese chatbot called Ernie.
And as Bloomberg reports, Baidu intends to integrate this artificial intelligence everywhere, including its search engine, self-driving cars, but also connected devices. And the possibility of using this chatbot could be one of the advantages of the future Baidu smartphone in China, compared to products offered by other brands. Moreover, like Biadu, the e-commerce giant Alibaba is also in the race for artificial intelligence.
He has already presented his generative AI called Tongyi Quianwen. However, launching a product similar to ChatGPT in China might be a bit more complicated. Indeed, Beijing provides a series of rules for Chinese artificial intelligence laboratories. According to a CNBC article, authorities would like AIs to reflect the core values of socialism and not oppose state power. In summary, like the Chinese internet, Chinese AIs would be censored.
