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April 8, 2013

Facebook copies Windows Phone?

That is right!
Facebook have been experimenting with monetization of mobile user traffic and the same time trying to deliver to the mobile user the best and relevant experience. It has been a struggle.
Just over a year ago Facebook have not had mobile advertising unit and was slow to react to a trend that more than half and growing # of its users were on mobile devices. Now mobile revenue is substantial, thanks to changes in strategy and swift implementation.
Facebook has struggled building great experiences for mobile users. Their HTML5 apps have substantial latency issues. The design is not the best either. To change that Facebook started building native apps and experimenting with the design of its site: its mobile site is horrendous today.

Facebook Phone has been in the rumors for several years. Now a struggling phone maker HTC will be selling phones with Facebook home screen. Facebook Home will be pre-installed in HTC First and several other main supported Android phones will be able to install the 'Home app' and change the home screen. Facebook has stolen 'People First' idea from Microsoft as Windows Phone has People Hub that truly revolves around people. Facebook will not deliver on its 'People First' as world does not start and end with Facebook. People use Twitter, LinkedIn, Exchange, Gmail ....

Will this help struggling HTC? Unlikely because of the fundamental cost structure of an OEM. Margins are razor-thin in such business and the successful model revolves around 'free parking'. Samsung makes money on selling chips in its devices. Amazon makes money on stuff they sell through. Google makes money on ads. None make money selling hardware.

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