Chinese Internet giant Qihoo 360 Technology is all set to invest $409 million in a joint venture with the smartphone manufacturer from Shenzhen, Coolpad Group. They are joining hands to launch a new smartphone under the brand name Dazen. The coming together of two stalwarts is being seen as great move by the analysts.
Qihoo is to take 45 percent of the stake while Coolpad will hold the majority with a 55 percent of stake in this joint venture.
Following the trend set by Xiaomi, Dazen will be marketed off via Internet shopping. Just like how Xiaomi gained its popular tag with just Internet being its source of purchase, Dazen hopes to find the same spot and hit it with the customers by providing lucrative deals through online shopping portals.
Just like Xiaomi, Dazen will rely solely on Internet marketing and then hope to pick up pace from the mouth-to-mouth popularization of the product. If one user likes it, they tell their circle and so on which increases the popularity of the product like wildfire.
Xiaomi is currently the third largest smartphone manufacturer and Coolpad is the fifth and the astonishing statistic is that both of them are ahead of Apple currently. That is quite a boost for this new joint venture and Qihoo hopes to integrate its specialty of online searching and Internet security with the expertise of Coolpad's innovative and technologically advanced smartphones and cook up a really great smartphone that customers would love.
The phone is expected to be great in design and simple in usage and also have a stable security system in case of theft or misuse. The makers hope that this would certainly appeal to the intended user-based.