Tencent to Launch Android Smartphone. Google Smiles

It was rumored that Tencent is set to build it’s own mobile operating system. That isn’t true. Its first phone, named HiQQ, is going to be built on top of Android, Google’s mobile operating system (OS).

The phone, as previously mentioned, combines QQ services with the hardware. The phone will be manufactured by giant mobile maker, Huawei and is expected to cost consumers about USD $150. Tencent has yet to announce the launch date and specific pricing for the phone.

Tencent isn’t the first to launch a branded phone in China. Taobao, China’s largest online retailer had also launched a phone in 2009. The phone was launched to draw more mobile users to Taobao. Tencent, on the other hand, launched its phone to encourage users to use its QQ Instant Messaging service while on the move. Tencent’s move into the mobile space isn’t surprising. What is surprising is that it took Tencent this long to make its move.

“I’m kind of surprised it took so long for a QQ phone to come out given the massive user base for Tencent,” said Duncan Clark, chairman of Beijing-based technology consultancy BDA. With over 600 million active accounts on QQ, Tencent’s HiQQ phone could be a hot product among Chinese users.

Google Smiles

Unlike its dipping search market share, Google’s mobile operating system is on the rise in China. Any new localized operating system launched would be a threat to the Android’s market share in China.

However, things seem to be getting rosier for Google with Tencent picking up Android as its mobile OS. This will help Google to penetrate deeper into the Chinese market. Perhaps, Tencent finds it too challenging to create its own mobile OS. After all, Android does have a robust mobile application marketplace which is readily available for use. We can expect more Chinese mobile applications in the near future. Surely, Apple’s iOS can’t fight Android’s growth rate in China. Google is smiling away. A big win in China!