Alibaba launched six new mobile phone models which run on the Aliyun system as it joined other Internet giants to tap growing demand for smartphones.

Alibaba’s cloud computing unit will allocate 1 billion yuan (US$1.6 million) of subsidies this year for handset makers and software developers to boost its market position and deepen collaboration. Alibaba will also share paid software income and digital content sales with handset makers.

The six new mobile phone models will be made by five domestic handset makers, including Amoi Technology and Konka.  Last July, Alibaba joined hands with K-touch and launched its first smartphone model.

Baidu, China’s largest search engine, last year also offered its system “Baidu Cloud Mobile Platform” to handset makers including Dell and Changhong to consolidate its position in the mobile Internet sector.