Facebook Home – The Right Idea But One That Brings Problems

It was only a matter of time before Facebook tried sinking its claws into mobile for a second time. While a lot of people were expecting a unique Facebook phone (technically that’s what they got with the HTC First), what was really revealed was the foundation of a new OS for smartphones.
The HTC First will be released in the U.S. on April 12th for $99.99, a solid price which should appeal to those who can’t or don’t want to purchase an iPhone 5 or Galaxy S III. While the aesthetics are pleasing to the eye – cover feed and the gesture controlled interface will certainly appeal to a number of users – there are a few thoughts that spring to mind.

Taking Over Your Phone From The Inside Out

From first impressions, the look and feel of Facebook Home reminds you of apps like Path. The use of cover feeds, circular profile pictures and how it integrates into the overall smartphone experience is easy on the eye and certainly helps the experience. Facebook has learnt from the lessons of previous Facebook phone experiments and has instead focused on taking over your phone from the inside out.
The masterstroke behind Facebook Home is going to be Chat Heads. Look past the terrible name and you’ll quickly realise that it’s a clever and well integrated feature that would be popular even as a standalone app. Combining both SMS and Facebook Messenger, it takes the focus away from what you’re using and instead places it on who you’re talking to meaning messaging is smarter. Also, the presence of Facebook apps on the screen as well means it’s a more intuitive experience if you’re a major Facebook user.

And making it intuitive is how it’s going to get people to stick with it. There’s a massive amount of users out there who only use Facebook so for them, it’s a perfect fit. Making it easy to find regardless of where you are and what you’re doing. Although that means that Google products like Now and Search have been put on the back seat, now requiring more steps to access them.Also, calling it a social phone is silly since pretty much every phone has been integrated with social in one form or another, making the term redundant. Instead, it’s more accurate to say that Facebook is creating a type of OS that has itself as the main attraction. Placing social at the front and centre of a smartphone is neither new or proven to succeed as Nokia and Windows Phone has found out (although sales are going up suggesting that it finally has a foothold in the market).
Striking deals with Samsung and Sony (and preparing a tablet version to be released over the coming months) that allow users to download and install the OS is a better idea since it’s not placing all its eggs into HTC’s basket. However, that brings it to another problem:

Chasing The New Smartphone Users

When you look past the glossy presentation and Chat Heads, what else is there to separate Facebook Home from Jelly Bean? More importantly, is there enough to convert regular Android users to Facebook Home when it arrives? At the moment there isn’t, and the lack of widgets and steps it takes to access Google services will put off the more dedicated Android users, but the target demographic isn’t current Android users, or even current smartphone users.
Instead, the pricing suggests that it’s aimed towards teenagers who have less disposable income, and those who are getting a smartphone for the first time. The latter is important as Facebook and HTC has the potential to break into developing markets like South America and Asia, the demographic where Facebook’s latest mobile audience is going to come from. By providing an easy access point for consumers to purchase a phone, it potentially creates new smartphone users and gets them accustomed to its OS since they’re not familiar with Android or iOS.

 You can certainly see Facebook advertising it to all Android app users – much like what it did with Poke back in December – but while that would certainly result in a high download rate, how many people are going to stick with it after the sheen has worn off? Also, will there be versions of Home available for lower spec phones, which would make up quite a significant audience, made available?
Certainly there will be a large group of people downloading it for curiosity value alone, and certainly there will be a vast number that will like it but will revert back to Jelly Bean, but that’s an audience that will be converted later. Currently, Home is an OS that looks nice but doesn’t have a lot of substance to it beyond being a evolved Facebook app. You can see a lot of new features being added to it over the coming months and it becoming more comprehensive over time, but for now, it doesn’t have enough to justify a permanent switch.

What Does Google Get Out Of This?

A lot has been said about the uneasy relationship Google has with Facebook so while Android is an open source platform, you have to imagine that Google isn’t too pleased about it. You would imagine that some deal has been struck behind the scenes, but even then, Google can’t do much to stop Facebook and perhaps blocking it from creating its own OS skin would be something that tech sites would be reporting on for days.

 Also, another new OS only serves to fragment the Android market even further. Alongside the original Jelly Bean operating system, you have hybrid versions like the Kindle Fire, Firefox and now Home. The manufacturer market is fragmented as it is, but Google is just allowing Facebook to test the waters with Home and see what the reception is like. It mightn’t be damaging now, but it could lead to it creating a new rival if it strikes deals with some of the major smartphone manufacturers.

Privacy Issues

Facebook is all about data. If it’s offering you something for free, you can bet that the payoff is going to be data that you enter. However a new OS gives it license to explore the entirety of your phone and see what apps you download, what apps you use the most and so on. Facebook is no stranger to privacy concerns and since Home is very much designed to gather mobile data, there is a lot of room for abuse.
The controversy around apps accessing your phone books back at the beginning of 2012 taught us that for many developers, it’s fine to do something until you get caught. There’s nothing to say that Home will do anything incredulous, but history has taught us that the definition of privacy is constantly being challenged so until Facebook address these concerns, there will be a section of users who will be reluctant to make the switch.

Diversifying Its Portfolio

The ultimate aim is for Facebook to spread its net as wide as possible and be in a position where its desktop product is a section of its empire and not the main attraction. By expanding its mobile presence in this manner, it allows the possibility of it breaking away from Android entirely and creating its own unique OS, and if it’s popular, manufacturers will want to get in on the action. The key to any successful investment is to diversify your portfolio and Facebook is doing that to help grow the business and more importantly, make investors happy.

In a way, if Home does become a success, you could see Facebook paving a similar path to what Google has done. Create an OS and then later release its own hardware like what Google has done with the Nexus 4 and 7. It’s learnt enough from previous attempts what works and what doesn’t so it will be interesting to see just how Home is going to be received. It’s a smarter move than creating its own phone, but the question of whether smartphone users are looking for a Facebook centric experience is going to be answered pretty soon.