FireFox OS –A $25 dream

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$25 dollar smartphone is likely to remain slideware

  • Mozilla is moving to fulfil the promise of an ultra-cheap smartphone but the outcome of this initiative is out of its hands.
  • In February 2014, Mozilla together with Spreadtrum launched a smartphone reference design that promised to put a Firefox OS smartphone in the hands of a user for an unsubsidised price of $25.
  • This device is now expected to launch in Indonesia and India towards the end of this year and should the devices make it to market, they should attract reasonable demand.
  • There will be a problem with the device not being Android as this is what a lot of emerging market customer’s demand, but the price is so attractive it should help users overcome this preference.
  • However, the biggest problem with this device is that I can’t see any manufacturers being willing to make it.
  • At the heart of this design is the SC6821 from Spreadtrum which offers Cortex A5 @ 1Ghz, 1GB embedded DRAM and 2GB of external NAND flash.
  • The reference design includes a 3.5inch HVGA screen, 0.3MP camera, 2G EDGE, WiFi, Bluetooth and FM radio.
  • This is not exactly exciting in the smartphone world but at $25, this measures up impressively against budget feature phones in this price tier.
  • However, the bean counters at the handset makers being offered this design will be wondering how they will be able to make any money at all out of it.
  • With this specification RFM calculates that any manufacturer making the device will have to sell 10m in order to break-even.
  • This means every handset maker that takes on the design will be looking for total commitments of at least 10m units before going into production.
  • This kind of commitment is almost unheard of in the mobile phone industry and I suspect that even getting commitments of 1m will be almost impossible.
  • This is exactly what killed the GSMA’s “3G for all” program in 2007 where LG could not secure commitments from operators for the KU250 to be able to make a decent return on the device.
  • It seems that history will once again repeat itself and unless operators can be made to really step up, this device will not make it off slideware.
  • Hence, while this is a great idea, it is totally impractical and I cannot see this project putting any extra pressure on Android or any of the other smartphone platforms.
  • Consequently, Firefox OS is likely to remain a smartphone platform that aims to offer superior performance than a similar priced Android device.
  • Since its launch in 2013, it has failed to fulfil that promise and as a result shipments and uptake of the OS have been very disappointing.
  • Something fundamental needs to change in order for FireFox OS to become anything more than a footnote in smartphone history.

 

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.

Blog Comments

[…] view on this platform remains unchanged (see here) in that I believe that the project needs to ship 10m units of the design with no modifications in […]