The Wall Street Journal reports that Chinese search giant Baidu is working with Foxconn and China Unicom to offer a low-cost smartphone, which will run a newly-developed operating system called Baidu Cloud. Baidu has been looking at the mobile space for some time, having developed its Android-based Baidu Yi platform last year, which the Financial Times said saw a lukewarm reception due to the high price of the supporting Dell-made handset.