Facebook Phone Flop

Looking for a great deal?  Well, the HTC First, which many people have deemed the Facebook phone recently dropped from $99 to $0.99.  Although it seems like the greatest cell phone deal to come along in recent years, there are some important reasons why is did not hold its value.

Not for Me - Not everyone is a Facebook junkie and that is the selling point of the phone that ATT poured advertising money into.  The phone dedicated to Facebook Home could not attract a big enough crowd, especially when Facebook is just a click away on most smart phones these days.

Lack of Technology - Each new phone seems to offer some new hardware or technological advance that warrants investing in a new phone.  The HTC First made no such promises.  It has a nice steel design, but where it matters the most, inside the phone, there were not any new innovations.

One Carrier - Exclusive contracts have lost their effectiveness in recent years.  Many companies, including Apple, have found that opening up the phone to different carries s profitable.  The days of a single carrier agreement are not showing the same results as with the launch of the iphone through AT&T many years ago.  Facebook might have been better off marketing under their own name through various carriers instead of AT&T.

Pricey – Many phones are offered for free with a two-year contract.  So, Facebook could have appealed to its users with a lower starting price or free with a special contract.  When, buying a new cell phone, carries have become so competitive in price that buyers are looking for a great deal or an impressive phone.

Timing – The HTC First was launched just before the Samsung Galaxy X4 which also is capable of using Facebook Home and has captured more buyers with its new features. Many companies look for a whole in the market or a specific time period (such as before a holiday).

It doesn’t look like the end of the HTC First, but definitely some changes in marketing and most obviously price.  This was one of the first attempts to use the obsession with social media to sell a phone.  Although it didn’t work this time, there are bound to be many other attempts to make social media a bigger focus on some new smart phones.

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