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Facebook Home Flagship Phone, HTC First, May Be Discontinued

zacharye writes "The HTC First, or 'Facebook phone' as many prefer to call it, is officially a flop. It certainly wasn't a good sign when AT&T dropped the price of HTC's First to $0.99 just one month after its debut, and now BGR has confirmed that HTC and Facebook's little experiment is nearing its end. BGR has learned from a trusted source that sales of the HTC First have been shockingly bad. So bad, in fact, that AT&T has already decided to discontinue the phone. Our source at AT&T has confirmed that the HTC First, which is the first smartphone to ship with Facebook Home pre-installed, will soon be discontinued and unsold inventory will be returned to HTC. How much unsold inventory is there? We don’t have an exact figure, but things aren’t looking good. According to our source, AT&T sold fewer than 15,000 units nationwide through last week when the phone’s price was slashed to $0.99."

19 of 192 comments (clear)

  1. Misread their market. by HornWumpus · · Score: 5, Insightful

    They should have charged extra and made them sign up for a waiting list.

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    1. Re:Misread their market. by crutchy · · Score: 3, Funny

      not everyone's phone gets discontinued so quickly... they should feel special

  2. Re:Unbelievable. by alen · · Score: 3, Insightful

    its not samsung

    the smartphone market is Apple and Samsung control more than 95% of the market. everyone else is table scraps

  3. Is Facebook a Toxic Brand? by dcollins · · Score: 5, Interesting

    The Facebook phone flops like few phones have ever flopped. Zuckerberg's lobbying group is collapsing like few lobbying groups have ever collapsed (http://techcrunch.com/2013/05/12/why-zuckerbergs-lobby-fwd-is-collapsing-like-a-house-of-cards-outside-of-dc/).

    Many of us are stuck with Facebook due its powerful networking effects (much like AT&T in the old days). But still the FB brand is renowned as being member-abusive, terrible about privacy, cavalier about interface changes and wiping out settings, etc. Perhaps this is a sign that few people are interested in letting FB expand its grip on their lives.

    --
    We know where leadership by an anti-intellectual "strongman" who scapegoats minorities and likes boisterous rallies goes
    1. Re:Is Facebook a Toxic Brand? by Nemyst · · Score: 4, Insightful

      The way I see it, the facebook brand is in a similiar position to the Windows brand. They're popular in the sense that they're ubiquitous, but not in the sense that they elicit passion. Unlike, for instance, Apple, you won't see "facebook fanboys" who'll defend the site to the death. It's used because just about everyone knows someone on it (as you said, the networking effects), but not because it has any particular strength or marketing genius.

      The question you need to ask yourself is that if all of a sudden facebook was replaced by another website fulfilling similar/identical needs, would people care? I think not. If you asked the same for Apple, though, I think a lot of people would cry out at their iDevices being taken away. That, right there, is brand power.

  4. Re:Unbelievable. by Bill,+Shooter+of+Bul · · Score: 4, Insightful

    Every phone is already integrated into facebook to a certain degree. If this were the only phone to ever allow you to see or update facebook, then yes it would be a smashing success. However, it is not. Even the marquee feature of the the "facebook home launcher" is available on other phones. There is nothing the phone can do that others can not.

    --
    Well.. maybe. Or Maybe not. But Definitely not sort of.
  5. Re:The light is on but nobody's home by Kichigai+Mentat · · Score: 3, Informative

    Yes. I loved my HTC s620 (AKA: "Excalibur," and "T-Mobile Dash"). Except for some of the limitations of Windows Mobile it was some really solid hardware. And reviews for the Nexus One, also built by HTC, were stellar, the Tytn II was pretty popular, and people seemed to like the T-Mobile G1. For the longest time there, HTC really did rule the roost. It's only relatively recently, if I remember correctly, that Samsung started to totally dominate, right around the time they launched the Galaxy platform.

    --
    Rawr
  6. Facebook better learn... by nick357 · · Score: 5, Interesting

    ...the ONLY reason they have the number of users that they do is because everyone's friends are on Facebook.

    People do not like Facebook. They hate the lack of security, the constant changing of format, the increasingly annoying advertising, etc, etc, etc.

    One day (and I believe it will be soon), a viable alternative will appear and their collective mass of users will leave practically overnight.

    No one loves Facebook. Its not cool. Its just where everyone is hanging until something better comes along.

    1. Re:Facebook better learn... by geek · · Score: 3, Interesting

      One day (and I believe it will be soon), a viable alternative will appear and their collective mass of users will leave practically overnight.

      No one loves Facebook. Its not cool. Its just where everyone is hanging until something better comes along.

      I went over to Google+ and have never looked back. All the high school bullshit from 20 years ago that somehow found me on Facebook is now long gone. I honestly hope Facebook stays alive for a while so as to keep all the fuckers I hate from my high school years away from my social networking.

  7. The most pointless phone ever is a flop by jandrese · · Score: 4, Insightful

    Can anybody name me a smartphone that doesn't have Facebook integration already? It's hard to build a phone around a killer feature when literally every competitor already has that feature.

    --

    I read the internet for the articles.
  8. Re:Unbelievable. by WillKemp · · Score: 5, Insightful

    Everybody hates Facebook - they only use it because everyone else does and they have to use it to keep in touch.

  9. Re:The light is on but nobody's home by WillKemp · · Score: 3, Interesting

    [......] has anyone ever had a positive experience with an HTC?

    Yes. I used an HTC Desire for two years and never had any problems with it at all. It was the best phone i'd had up to that point by far.When it came to replacing it, the Galaxy S3 only won out over the One X because it had a replaceable battery and an SD card.

  10. Blame HTC by ArcadeMan · · Score: 3, Funny

    There was a translation problem when the order came in,

    "We want a smart, flip-phone" got translated to "We want a smart, flopped-phone".

    And boy, did HTC deliver!

    1. Re:Blame HTC by geek · · Score: 4, Informative

      The phone is actually very good. The hardware that is. If you stripped out Facebook Home you would basically have stock android on it. At .99 cents on contract thats a damn good buy if Cyanogen Mod supported it.

  11. Not surprising in the least by m.dillon · · Score: 4, Insightful

    Because, really, there was never a 'Facebook' phone in the first place. It was just an annoying app launcher that should never have been bundled with a phone. This also demonstrates the sheer power that the default app launcher has to make or break perfectly fine hardware. Even though the customer can easily replace the launcher, bundling a phone with a messed up launcher basically destroys sales of the phone.

    Vendors try to lock people into these sorts of things all the time, it just usually isn't quite so blatant and most people don't even realize that it is happening. Buy a Motorola phone and you get some minor but interesting stuff that is generic but locked into the platform (can't be downloaded and run on other android phones). Same with all vendors, but they have to tread carefully or risk alienating their entire user base. The FB stuff was so in-your-face that even a 5-year-old could turn away from the foul stench.

    -Matt

  12. Re:Can't this be unlocked, flashed, and repurposed by Kyokugenryu · · Score: 3, Insightful

    This being a GSM AT&T phone might be a big roadblock in you activating it on Sprint's CDMA network

  13. Re:The light is on but nobody's home by kwark · · Score: 3, Insightful

    Coming from the G1 and Desire Z, new HTC phones lack a lot of features:
    -no replacable battery
    -no trackpad
    -no SD
    -no keyboard
    all these features are missing on any "modern" phone, the trend is to make all buttons disappear at the cost of screen real-estate. So when it was time to get a new phone I went for the one with the biggest screen and most of the disappearing features, I went for Samsung.

  14. Re:Use some logic, dude. by citylivin · · Score: 5, Interesting

    "Everybody hates it and everybody uses it? That doesn't make any sense."

    OIL, Coal, Microsoft Windows, inkjet printers, Fiat Currencies, cable television, pop with glucose/fructose. There are lots of things that people don't like, but merely put up with because they do not have (or perceive to have) a better alternative.

    --
    As a potential lottery winner, I totally support tax cuts for the wealthy
  15. Re:Does anybody know? by slew · · Score: 4, Informative

    Is it normal for the carrier to not outright buy the phone until they sell it?

    I don't know about phones, but in the distribution world, it is very common for a reseller to not actually buy a product before it is sold.

    Many companies these days work on a virtual inventory basis with their primary supply chain. The basic idea is that the seller of the product effectively leases space in the warehouse to the supplier with a contract such that the supplier agrees to maintain a certain amount of virtual inventory. When the seller sells-through a product, they don't actually have to pay for the inventory until the second the unit is "pulled" from this hub and then the supplier bills the seller and is on the hook to replenish this inventory. Of course the seller discontinues that product, then it just never pulls any more units from hub and the supplier is left holding the bag (even though the inventory is in the seller's warehouse). On the sale, the seller often still has "net-90" days to pay for it as well. As you can see, the life of the supplier isn't easy, nowdays they need to pay for both the inventory and the account receivables side...

    For the inventory on the shelf there is a similar paradigm, as part of the shelf stocking agreement, a repurchase agreement is made that the seller can require the supplier to purchase back some or all of the inventory (although usually at a discounted rate), if the inventory hasn't been sold in a certain number of days. This type of stock/repurchase agreements happens in industries far and wide, supermarkets to bookseller to electronic's retailers.

    The rationale for the seller offering a high repurchase price and percentages is for the seller and supplier to maximise the amount of product on the shelves (to prevent out-of-stock sales loss) given the seller's risk tolerance for the product. Of course the supplier may be irrational, but the seller is covered a bit in this case... Usually the seller says I'll risk $X to stock your product on the shelf and the agreement is structured by the supplier that although $Y of inventory is stocked, $Y - #units X repurchase_price = $X.