Microsoft lost trust from its hardware partners with the Zune MP3 player which ultimately caused the product to fail. The new Facebook phone could be equally disastrous by pinning HTC against its current software partners.
HTC has strong relationships with Google for Android OS and Microsoft for Windows Phone 7, relationships that could be jeopardized in moving forward with a Facebook phone.
“One of the key standout features for Windows Phone 7 is social networking and in particular, Facebook integration (Facebook and Microsoft are partnered),” reports Digital Trends. “Google, on the other hand, is at war with Facebook with Google+, and monetizes Android after-the-fact with services like Google+.”
“Right now Apple, Microsoft and others spend lots of time on Facebook, but they aren’t likely to continue if they view Facebook as a potential competitor,” suggests the post. “Facebook should be focused on building the best Facebook app for every major platform.”
In a related survey conducted by AllThingsD, results suggest an overwhelming number of readers had little to no desire for a Facebook phone (81 percent indicated no interest and 12 percent said they would consider it).
Facebook has selected Taiwanese phone manufacturer HTC to build a smartphone code-named “Buffy,” after the television vampire slayer.
Ironically, the device will run a customized OS from its main competitor, Google’s Android, and integrate a number of Facebook’s services, many of which will run as HTML5 apps.
“Facebook only recently chose HTC, after also considering at least one other potential hardware partner — Korea’s Samsung,” reports AllThingsD. “That means the products themselves are still a ways from hitting the market, potentially as long as 12 to 18 months.”
According to a Facebook spokesperson: “Our mobile strategy is simple: We think every mobile device is better if it is deeply social. We’re working across the entire mobile industry; with operators, hardware manufacturers, OS providers, and application developers to bring powerful social experiences to more people around the world.”
Although other companies have released phones with dedicated Facebook buttons, Buffy is expected to provide deeper integration, “bringing friends and social activities deep into the mobile interface.”
A recent study by EyeTrackshop showed that Apple’s iPhone 4S and iPad 2 “drew more glances and held people’s attention longer than Google Android devices from Amazon, HTC, Motorola and Samsung,” reports Forbes.
The study showed participants a picture of six smartphones and five tablets. EyeTrackshop’s software tracked where subjects’ eyes went, in what order and how long, using webcams.
“EyeTrackshop said the results equate to respondents dwelling on the iPhone 4S 42 percent longer than the other phones and on the iPad 138 percent longer than the other tablets.”
Additionally, a follow-up survey indicated that 40 percent found the iPhone most visually appealing; for tablets, 35 percent for the iPad; and disregarding price, 47 percent said they would buy the iPhone and 48 percent preferred the iPad to other tablets.
Google has purchased another 1,023 patents from IBM as part of what Digital Trends describes as Google’s Android defense strategy against smartphone lawsuits from Apple and other companies.
The article indicates that the transfers were recorded by the U.S. Patent and Trademark Office last week, and reminds us that Google also acquired 1,030 IBM patents in July and picked up 17,000 additional patents in its recent acquisition of Motorola.
“Indicative of how the patents are being put to use,” reports Digital Trends, “Google recently sold a batch of newly acquired patents to HTC — including some formerly owned by Motorola — in order to allow HTC to sue Apple.”
“Google is building an arsenal of patents that the company has said is largely designed to counter a ‘hostile, organized campaign’ by companies including Apple Inc. and Microsoft Corp. against the Android operating system for mobile devices,” adds Bloomberg.
Sprint Nextel will reportedly offer unlimited data service plans for the new iPhone 5, expected to debut next month. This would be attractive to big data users and mark a major difference from rivals AT&T and Verizon Wireless.
Sprint has been struggling with its bigger rivals and hopes that adding the iPhone to its lineup will lure new customers. “It’s a competitive disadvantage if your two larger competitors have the iPhone and you don’t,” says Matthew Thornton, an analyst at Avian Securities. “Getting the iPhone closes that gap.”
Sprint, the third-largest U.S. wireless carrier, already offers unlimited voice and data for RIM’s BlackBerry and HTC’s Evo customers at $99.99/month.
According to Bloomberg: “Apple’s iPhone has proved to be a valuable recruitment tool for rivals: Of the 5.6 million smartphones AT&T sold in the second quarter, the device accounted for 3.6 million. A quarter of the subscribers who bought the iPhone were new to AT&T, the company said.”
The HTC Jetstream tablet (formerly named Puccini), will be available through AT&T beginning this Sunday.
Notable features include: a Snapdragon 1.5 GHz dual core processor, front-facing camera, 8-megapixel rear camera, and HTC scribe stylus pen.
The Jetstream runs Android 3.1 Honeycomb on a 10.1-inch screen and will be AT&T’s first tablet with real 4G LTE.
According to the company press release: “HTC Jetstream is AT&T’s first tablet to showcase the Android 3.1 OS. The brand new operating system was designed from the ground up for devices with larger screens. It improves on Android favorites with new interactive and resizeable widgets plus improved multi-tasking, browsing, notifications, and customization.”
However, the $700 price tag, “discounted” with a 2-year contract (and $35/month data plan), may prove off-putting to some consumers.
ReadWriteWeb journalist Dan Rowinski posted an interesting op-ed piece this week: “HP’s $99 TouchPad Fire Sale Can Teach Everybody A Lesson.”
“Tablets priced at $99 flying off the shelves and what had been a significant headline on Tuesday (Best Buy has 250,000 unsold TouchPads) had completely turned around on Sunday (Good Luck Finding a $99 TouchPad),” writes Rowinski. “It got me to thinking. As much as consumers love their Apple products and the iPad is a terrific device, consumers want something that is price efficient, even if it is a touch flawed. With literally hundreds of thousands of TouchPads sold over the weekend, a significant note should be playing in retailers’ and manufacturers’ heads — opportunities await for those willing to make a sacrifice.”
Rowinski speculates that an iPad killer is not in our immediate future. He also suggests that major changes are in the making with the browser-based mobile apps enabled by HTML5. He discusses tablets by Motorola, Samsung, HTC and Research In Motion and how price point may become as significant a factor as available apps. He addresses how Amazon learned valuable lessons with its Kindle and could possibly “recreate the Kindle furor by introducing a tablet into the market at $200 or less.”
“The great equalizer will be price,” writes Rowinski. “Amazon and to a certain extent Microsoft with Windows 8 have actually benefited from waiting to enter the tablet wars. They now see the battlefield in front of them and what it will take to make an impact. Quality devices with reasonable prices. Then turn and make money through value-added services.”
