A number of Chinese Internet companies started to go mobile this year, their first incursion into the smartphone market.

In May, the Chinese Web search engine Baidu Inc teamed up with Sichuan Changhong Electric Co, China's home appliance maker, to promote low-end smartphones. The model was sold for less than 900 yuan.

The e-commerce giant Alibaba Group Holding Ltd introduced its first smartphone based on a self-developed operating system this month. The price of the new gadget was priced at 999 yuan, the same as a bluetooth earphone for an iPhone.

On the same day, Shanda Interactive Entertainment Ltd, an Internet-based IT firm, also released a slightly higher priced smartphone, Bambook. The highest priced for the device is 1,499 yuan, enough to buy two Samsung Galaxy SII phones.

Qihoo 360 Technology Co, an Internet security company, also announced it would enter the mobile phone market this year.

Despite the growing competition, industry insiders believe there is still a lot of room for newcomers as the market remains young and heavily relies on the development of the mobile Internet, an even younger industry.

"The silver bullet for Chinese competitors to survive is to find a segment of the market and make specialized devices for that particular sector," said Lin.

gaoyuan@chinadaily.com.cn