ByteDance, the creator of the popular video-sharing app TikTok has confirmed it is foraying into a new business. After inking a deal with device maker Smartisan Technology, Beijing-based ByteDance revealed on Monday that it is developing a smartphone.

New Venture Beyond Video And News Apps

ByteDance revealed its plans to venture into the smartphone business amid expansions into new sectors beyond video and news apps.

The company has recently started to invest in sectors that are not directly related to social media. Last week, reports emerged that ByteDance acquired Jukedeck, a London-based startup that develops AI-generated music software.

Besides TikTok, the tech company also owns other popular AI-based video and news apps, which include the Slack alternative Lark, news aggregator Toutiao, and video chat app Flipchat.

TikTok, however, is by far its most popular offering. The fastest-growing social media app now has an impressive 500 million regular users. The app has also recently unseated Uber as the world's largest privately backed start-up with a valuation of $75 billion.

Smartphones In Smartisan's Development Plans

A ByteDance spokesperson said in a statement that a smartphone had been part of Smartisan's development plans prior to a deal it made with ByteDance.

Smartisan is a niche player in China's smartphone sector. A set of its patents were acquired by ByteDance earlier this year. Some of its employees also transferred to ByteDance.

"The product was a continuation of earlier Smartisan plans, aiming to satisfy the needs of the old Smartisan user base," the spokeswoman said, as cited by Reuters.

Chinese financial news outlet Caijing reported on Monday that the phone has been in development for seven months and the effort is being led by former Smartisan executive Wu Dezhou.

Search engine company Google and e-commerce leader Amazon have branched out into the mobile device business, but whether or not ByteDance successfully enters the smartphone market remains to be seen.