Are Apple and Google Worried About Baidu’s New Smartphone?

The Web portal Sina.com (NASDAQ:SINA) announced on Wednesday that China’s biggest Internet search provider Baidu.com Inc. (NASDAQ:BIDU) will release a value priced smartphone in the near future.

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Baidu’s smartphone will attract budget conscious consumers with its $160 dollar price tag. The Internet search provider is looking to target first-time smartphone buyers in China. The smartphone is expected to feature a 3.5 inch touchscreen, 1400mAH battery and high-resolution camera. As for software, the phone will use the Yi mobile platform which is compatible with Google’s (NASDAQ:GOOG) Android apps. Consumers will be able to use services such as cloud storage, photos, music, and maps for free over Baidu’s servers.

According to the report, Foxconn Technology Group will be in charge of the production of the device.  The Taiwanese electronics manufacturer is currently the largest supplier for Apple (NASDAQ:AAPL) gadgets, including the increasingly popular iPad and iPhone devices. Hon Hai Precision owns the Foxconn factories that assemble Apple devices.

Baidu launched its first smartphone — the Streak Pro D43 — in December 2011. Dell Inc. (NASDAQ:DELL) produced and manufactured the $474 Baidu smartphone, which was targeted at business users. Baidu’s Chief Executive Officer Robin Li emphasized the company’s new goal of branching out to mobile, which he considers an important growth channel for Baidu.

Without a doubt, Baidu’s plan to launch a value priced smartphone into the market is an attempt to compete with Google, Apple, Samsung, Research in Motion (NASDAQ:RIMM), and others in the smartphone arena. On Friday, Baidu shares closed down almost 1.16 percent at $122.23.

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