Qihoo, a Chinese firm specializing in computer security, will invest $ 409.05 million in a joint venture formed alongside Coolpad Group, a distributor of smartphones. At the end of the operation, the company will obtain 45% of shares announced Zhou Hongyi, chairman of Qihoo.
The new structure will develop smartphones that will be marketed under the “Dazen” brand. On the new models, Qihoo will provide several mobile services.
Rise of Chinese brands
This announcement comes as Chinese smartphone manufacturers are increasingly establishing themselves globally. Among the industry’s rising stars, Xiaomi was the third biggest seller in the industry in the third quarter according to IDC, with 17.3 million terminals sold worldwide.
A recent Gartner study for the third quarter estimated that of the top five smartphone vendors in the world, three are Chinese companies (Huawei, Xiaomi, and Lenovo). A competition which seems to be exerted mainly on the South Korean Samsung whose market share went from 32.1% to 24.4% in one year.