The Changhong H5018, a low-end smartphone priced at 899 yuan, is the second smartphone model to run on Baidu’s mobile operating system. Consumer electronics manufacturer Sichuan Changhong Electric Co partnered with Baidu to produce the handset.
　　The new smartphone integrates Baidu’s cloud computing technology and cloud-based services and applications. Through the device, users can enjoy 100-gigabyte cloud storage and access Baidu services such as a search engine, maps, music and an application store.
　　Baidu launched its first smartphone in cooperation with Dell Inc last September, but the device received a muted market response due to its high price and limited sales channels.
　　"The Baidu Cloud smart terminal platform can introduce a high-quality mobile surfing experience to users, and more importantly, it will help cut mobile phone manufacturers’ costs," Baidu Vice-President Wang Jin told a media briefing in Beijing on Tuesday.
　　In addition to Dell and Changhong, Wang revealed that a number of other mobile phone manufacturers had been discussing the possibility of adopting Baidu’s operating system.
　　Baidu’s participation in China’s smartphone market is seen by analysts as a strategic move to embrace mobile Internet, analysts said.
　　The company had a 78.5 percent share of China’s Internet search engine market in the first quarter but has a far less influential position in the nation’s mobile search engine market.
　　Baidu had a 34.9 percent share of China’s wireless search engine market last year, while Shenzhen-based Easou.com had 21 percent and Soso.com, a mobile search subsidiary under Tencent Holdings Ltd, brought up the rear with 19.7 percent, according to research firm Analysys International.
　　However, analysts were not optimistic about the market performance of Baidu’s smartphone.
　　Wang Ying from Analysys International said competition in China’s low-end smartphone market is heating up, with more players from home and abroad joining the fray.
　　"To be frank, though Changhong is famous for its home appliance products, it is less competitive in the mobile phone field," Wang said.
　　Domestic rivals, such as Huawei Technologies Co Ltd and ZTE Corp, have the upper hand in the entry-level smartphone market through their good relationships with telecom carriers.Meanwhile, international players, such as Samsung Electronics Co Ltd and HTC Corp, can take advantage of their strong branding.
　　快讯：如今，中国的手机市场异常繁荣，无论是来自全球第一大手机生产商的iPhone，还是国内后起之秀小米手机，都在市场上占有一席之地。互联网企业也来凑手机市场的热闹，百度5月15日宣布与长虹合作推出百度云手机，该款手机贴长虹牌，由富士康代工，装载百度云平台，并且搭上了中国联通定制的快船，裸机的零售价只有899元。部分业内人士对这款低端配置的平价智能机并不怎么看好。不过究竟好不好，还是得看市场对噱头十足的“百度手机”买不买账了。
　　相关事件报导：
　　在百度发布手机同天，小米手机也发布了一款低配手机“青春版”，售价仅1499元。自去年小米手机打出低价牌后，后来之士纷纷仿效。至此，已有包括百度、小米、360等加入战团。互联网企业看好移动互联网，但部分业界人士却持相意见。5月16日，李开复通过新浪微博表示，两个产业差别巨大，互联网公司做手机绝大部分会失败。手机在内部项目评估中属于不赚钱不主流的项目，又要花大钱，很难得到足够资源，会被主流项目压挤。

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