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‘Facebook Phone’ Not Doing So Well

Picture 5-23-2013

In a previous blog post, I discussed the announcement of Facebook Home, a feature that would be used as a custom homescreen for Android smartphones and would be launched on the HTC First, which has since been colloquially known as the ‘Facebook Phone.’ The HTC First was launched on April 12 at a price point of $99.99, which apparently was not a viable option for many consumers looking to purchase a new phone and try out the Facebook Home feature.

The first sign that AT&T and HTC were having problems selling the phone was when the phone’s price dropped from $99.99 to $0.99 (with a two-year AT&T contract) only a month after its release. Though the price drop was referred to as a limited time offer, the media says otherwise, believing that the so-called Facebook Phone has been a complete flop and is not likely to do much better from here on out. It is likely that the price drop is an effort to push out the phone to those who are looking for affordability rather than being jam-packed with useful features.

Some media outlets have cited other issues for why the HTC First has been a flop. In particular, there has been focus on the new phone’s unremarkable hardware in comparison to other recently released phones, as well as the fact that the HTC First was supposed to operate as a showcase for Facebook Home even though there were plans to immediately bring the Facebook Home platform to other Android phones. On top of that, only a select group of individuals are likely to be particularly interested in Facebook Home in the first place, further reducing the potential target market for the HTC First.

Recently, the Facebook Home feature has been released for the much more popular HTC One as well as the Samsung Galaxy S4. With Facebook Home on these smartphones, it’s no surprise that the HTC First is tanking. In fact, AT&T is reportedly planning to discontinue the phone entirely, considering it only sold 15,000 units in the first month it was released. Granted, this was before the price drop, but the fact that they are still reportedly discontinuing it means that lowering the price doesn’t seem to be increasing the sales by enough.

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