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Speaker 1: Brought to you by the reinvented two thousand twelve camera.

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Speaker 1: It's ready. Are you get in touch with technology? With

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Speaker 1: tech Stuff from how stuff Works dot com. Well, hello there,

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Speaker 1: welcome to tech stuff. My name is Chris Poulette, and

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Speaker 1: I am an editor here and how stuff works dot Com.

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Speaker 1: Sitting across from me as he always does, his senior writer,

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Speaker 1: Jonathan Strickland, What is steel compared to the hand that

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Speaker 1: wields it. Look at the strength in your body, the

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Speaker 1: desire in your heart. I gave you this such a waste.

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Speaker 1: Contemplate this on the tree of whoa whoa, whoa. Well,

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Speaker 1: we have two quotes for the price of one much

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Speaker 1: shorter than the other, right, right, So you get a

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Speaker 1: bonus point if you you can name the other quote

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Speaker 1: a third of a point. I shall I shall go

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Speaker 1: so far as to say that quote has nothing to

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Speaker 1: do with what we will be talking about today. No,

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Speaker 1: because we are talking about the Facebook phone, or the

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Speaker 1: rumor I should say, have a Facebook phone right now.

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Speaker 1: This rumor first surfaced on the interwebs back on September nineteen. Yes,

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Speaker 1: that's when a certain Mr Arrington of tech crunch fame

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Speaker 1: wrote about this, quoting some unnamed sources stating that Facebook

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Speaker 1: was looking into designing a phone, and uh. It was

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Speaker 1: quick to point out even in that piece that Facebook

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Speaker 1: was not necessarily looking at designing the actual hardware, but

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Speaker 1: rather designing some sort of interface or operating system that

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Speaker 1: would rest on that hardware and be deeply integrated in

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Speaker 1: the handset, so that Facebook would kind of guide your

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Speaker 1: entire experience on the phone. Yes, and that's really not unusual.

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Speaker 1: Um no, no, Apple and Google are both doing that. Yes,

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Speaker 1: absolutely sou So the question is are they actually going

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Speaker 1: to do that, And the answer is definitively maybe. Yeah.

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Speaker 1: Here's the thing is that Facebook came out very quickly

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Speaker 1: after this report was published on tech Crunch to deny

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Speaker 1: the claims, but they denied it in such a way

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Speaker 1: that it sounded almost like it was arguing semantics, like

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Speaker 1: like they were saying, no, no, we're not designing an

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Speaker 1: interface for a phone. We're just developing some new interfaces

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Speaker 1: to go with smartphones. And you think, wait, that's what

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Speaker 1: we said you were doing, and like no, no, no,

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Speaker 1: look over here, it's a picture of Chewbacca. Uh yeah,

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Speaker 1: it was the Chewbacca defense. It was um uh, it

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Speaker 1: definitely seemed like they were the Facebook executives were trying

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Speaker 1: to back away from something while not categorically denying it.

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Speaker 1: Um and the Arrington had some interesting evidence to to

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Speaker 1: point to. I mean evidence in the loosest sense of

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Speaker 1: circumstantial evidence, I guess is what you would call it.

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Speaker 1: And part of that was that he had suspected that

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Speaker 1: who Facebook employees, in particular two very high ranking ones.

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Speaker 1: We're working on this project. Yes, Joe Hewitt and Matthew

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Speaker 1: Papas actually have no idea how to say his name

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Speaker 1: because I'm not Greek. Well, but both neither of those

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Speaker 1: two gentlemen are strangers to the smartphone software designing world.

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Speaker 1: That's true. Hewitt actually was one of the people who

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Speaker 1: worked on the Firefox browser and and so he he

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Speaker 1: was developing Facebook applications for iPhone and things like that,

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Speaker 1: and then apparently got kind of tired of doing that. Um.

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Speaker 1: So Arrington suggests that Hewitt may be working on this

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Speaker 1: new interface for a phone, like a Facebook branded phone.

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Speaker 1: Uh uh, Matthew, because I'm going to say Matthew just

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Speaker 1: because I don't want to ruin the guy's last name.

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Speaker 1: I like I said, I'm not exactly certain how to

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Speaker 1: how to pronounce it, because my Greek is terrible. My

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Speaker 1: Greek is worse than Shakespeare's and his was pretty darn bad.

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Speaker 1: So Matthew was. He came from Google. Actually, he had

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Speaker 1: been working on the Google Chrome operating system, and Facebook

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Speaker 1: lured him away. And Errington said, what could possibly lure

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Speaker 1: an engineer away from a project as interesting as the

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Speaker 1: Google Chrome operating system appears to be? And so Errington's

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Speaker 1: conclusion is that the Facebook phone is really the only

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Speaker 1: thing that makes sense to him. So again, circumstantial evidence. Yeah,

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Speaker 1: and at this point, um, at at the point at

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Speaker 1: which we are recording this in late September, um, there's

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Speaker 1: nothing that definitively states that Facebook of the company is

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Speaker 1: going to build a phone for certain, I mean, even

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Speaker 1: with a with a partner, that Facebook will come out

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Speaker 1: with a phone that has Facebook on it, you know,

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Speaker 1: on it as its brand name. Sorry that that didn't

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Speaker 1: come out right. Well no, no, but just just like

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Speaker 1: just like the HTS, the phones and other Android phones,

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Speaker 1: some of them have the Google brand printed on the phone.

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Speaker 1: Even though Google did not design the hardware. In some cases,

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Speaker 1: Google had a very tight relationship with that hardware provider,

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Speaker 1: so that the specs would would be able to support

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Speaker 1: the operating system Google was developing, but ultimately that design

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Speaker 1: rests with another company. That's the same sort of thing

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Speaker 1: that we're talking about here is that, Uh, we don't

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Speaker 1: know if there's going to be a phone that comes

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Speaker 1: out that will have Facebook's logo on there as part

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Speaker 1: of the phone. But absolutely mobile phones are of different

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Speaker 1: sorts are prime targets for Facebook. Um. That's been proven

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Speaker 1: through other applications for Android and iPhone and others, um,

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Speaker 1: BlackBerry and UM. They actually, you know, this is something

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Speaker 1: that they really want to do, uh, and they want

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Speaker 1: to be available to mobile customers. And I think mobile

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Speaker 1: customers want to have access to Facebook, especially with smartphones

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Speaker 1: that have a more rich experience than than others might

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Speaker 1: um with the hardware. Um. The thing is, why would

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Speaker 1: Facebook want to do this other than you know, hey,

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Speaker 1: we just like to make the service convenient for our subscribers, right. Um,

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Speaker 1: it's really the same reason that Google and Apple want

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Speaker 1: to do it. It's it's really and it's really a

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Speaker 1: an attempt to define what your mobile online experience will be.

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Speaker 1: Right because right now, Facebook is an app that rests

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Speaker 1: on another operating system, as a foundation. So Facebook is

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Speaker 1: just one of those things, or the Facebook apps are

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Speaker 1: just one of those apps you can access along with

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Speaker 1: all the other dozens of apps or hundreds or thousands

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Speaker 1: of apps that are available for whatever platform you're using.

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Speaker 1: But once you close out the app, unless you're using

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Speaker 1: other apps that connect to Facebook through Facebook connect, uh,

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Speaker 1: you're not. You're no longer really relying on the platform anymore. Right.

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Speaker 1: Facebook would like to create just like any other company

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Speaker 1: would like to create a platform where everything is kind

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Speaker 1: of integrated through their system. It gives them way more information,

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Speaker 1: which as we know Facebook, for Facebook, information is money. Yes,

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Speaker 1: And uh, I think that Marguerite Reardon and Caroline McCarthy,

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Speaker 1: I've seen it, probably have hit the nail on the

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Speaker 1: head on exactly what type of information Facebook would like

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Speaker 1: to make available to you. And uh, it's uh, it's

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Speaker 1: not really Farmville, although I think there's an app for that.

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Speaker 1: Sure for most phones. There is for the the iPhone,

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Speaker 1: I know, Um, but no, it's not that at all.

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Speaker 1: The information that Facebook wants to make available to you

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Speaker 1: is the advertising information. Um. As the they McCarthy and

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Speaker 1: uh Reardon cided the International Telecommunications Union, who said that

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Speaker 1: five billion people worldwide are using some kind of cell phone,

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Speaker 1: and um, you know, since Google and Apple control the

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Speaker 1: ad markets on their respective platforms, Facebook, it would make

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Speaker 1: sense that Facebook would want to leverage the plus million

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Speaker 1: users who are using their website, um as they already

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Speaker 1: do and with their partners to try to advertise to them.

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Speaker 1: And so this would be a prime opportunity for them

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Speaker 1: to do that. And that's a good reason for them

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Speaker 1: to actually make the move, right. It's another revenue generator

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Speaker 1: if they if they were able to leverage the mobile

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Speaker 1: world the way they have the web, just the basic web, Uh,

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Speaker 1: they could you know, you're talking about the potentially doubling

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Speaker 1: or more your revenue. I mean that's and keep in

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Speaker 1: mind this is still a private company. This is that's

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Speaker 1: when you sit there and think about how much money

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Speaker 1: Zuckerberg is supposedly worse. That's a mark Zuckerberg founder and

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Speaker 1: CEO well some some some dispute the founder part, but

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Speaker 1: definitely ceo Facebook. He um. He was recently valued at

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Speaker 1: some crazy I think it was like twenty four billion dollars.

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Speaker 1: It was a it was a really high amount. Um.

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Speaker 1: You would imagine that number would grow exponentially or at least,

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Speaker 1: maybe not exponentially, but at least linearly from if he

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Speaker 1: were able to leverage the mobile world the way he

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Speaker 1: has the web world. And you were speaking about seen

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Speaker 1: it Seen It also has reports from hardware manufacturers that

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Speaker 1: Facebook has Facebook executives have approached them about creating a

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Speaker 1: device that would allow Facebook to be deeply integrated into

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Speaker 1: the phone's features and article. And in fact, they've gone

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Speaker 1: so far seen that actually has gone so far as

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Speaker 1: to suggest that, uh, they're working. Facebook's actively working with

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Speaker 1: I n Q Mobile, Yes, to create two smartphones that

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Speaker 1: will be really heavily Facebook have heavy Facebook integration with

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Speaker 1: them that would launch over in Europe in the first

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Speaker 1: half and in the United States in the second half.

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Speaker 1: And that's funny because uh, and connected to the A,

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Speaker 1: T and T network. I just wanted to finish that. Sorry,

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Speaker 1: I didn't mean to interrupt at all. Um. Yes, actually,

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Speaker 1: uh that goes also along if if you think about

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Speaker 1: it with um recent rumors again that Facebook is plotting um,

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Speaker 1: and that's a good word plotting, Yes, well, actually in

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Speaker 1: a in a good way for them, um, not in

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Speaker 1: a sinister sort of way. Um. Seriously planned making plans

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Speaker 1: again for an initial public offering of stock. Um that

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Speaker 1: would help help them do some um, you know, add

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Speaker 1: some badly needed cash for adventure of that sort of

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Speaker 1: uh scale. I would imagine. However, the number I saw,

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Speaker 1: actually the date I saw on that was when I

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Speaker 1: saw that again this morning. So if the phone that

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Speaker 1: would mean that the phones would hit, that would be

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Speaker 1: before the rumored again again again I p o. There

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Speaker 1: are so many rumored I p o s for Facebook

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Speaker 1: at this point. Yeah, Facebook, pretty much ever since Facebook

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Speaker 1: started taking off, there have been rumors about when they

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Speaker 1: would have a public offering, and you've got to I'm

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Speaker 1: sure that the investors in Facebook are eagerly anticipating that

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Speaker 1: day because it's going to turn them all into even

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Speaker 1: more filthy rich people than they already are, because of course,

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Speaker 1: you know, Facebook is funded by lots of well now

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Speaker 1: it's got revenue, but it was initially funded by by

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Speaker 1: some venture capital investors. So but now it's of course,

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Speaker 1: it's actually making money. It's not just an unlike Twitter,

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Speaker 1: which is a you know, a service that still doesn't

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Speaker 1: really have a viable business model, Facebook actually does because

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Speaker 1: they make their money through advertising, and of course, and

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Speaker 1: that's exactly what we were talking about earlier with Facebook

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Speaker 1: using the information you have through your phone, uh as

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Speaker 1: another yet another UH commodity to sell to advertisers. And

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Speaker 1: in fact that that kind of leads into a discussion

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Speaker 1: about things that we need to be concerned about. If

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Speaker 1: there is to be a Facebook phone, Yes, and privacy

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Speaker 1: is way up there, because Facebook, of course is UH

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Speaker 1: infamous really for the way that it handles privacy or

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Speaker 1: doesn't handle privacy, depending upon your perspective on the matter.

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Speaker 1: And Zuckerberg himself has been known to say in one

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Speaker 1: way or another that privacy is a it's an outdated concept,

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Speaker 1: you know, and for someone who says that he's actually

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Speaker 1: a remarkably private person, but he claims, or he has

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Speaker 1: claimed in the past, at least in a circumcans circumspect way,

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Speaker 1: that privacy is on the way out, that it's it's

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Speaker 1: something that is just not really valued anymore, and so

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Speaker 1: UH as a result, you shouldn't have to worry about

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Speaker 1: it so much when you're providing services. UM. Now, that's

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Speaker 1: landed him and Facebook into some hot water among consumers

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Speaker 1: and consumer groups advocacy advocacy groups in the past. So

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Speaker 1: I would imagine a Facebook phone would bring even more

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Speaker 1: questions because think of it this way. The idea with

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Speaker 1: integrating the Facebook elements into the phone, It may have

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Speaker 1: things like turning your contact list into a Facebook friends list. Right, So,

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Speaker 1: then you start wondering, well, how much of this information

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Speaker 1: is Facebook really accessing or capable of accessing? Are they

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Speaker 1: able to see who all my friends are? I mean

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Speaker 1: imagine they would be able to because it's so deeply

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Speaker 1: integrated into Facebook. Would they be able to see who

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Speaker 1: I call and when? Would they be able to see

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Speaker 1: how long my phone calls last with particular context? How

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Speaker 1: would they use that information? Would they then start to

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Speaker 1: make other connections? Like let's say that they know for

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Speaker 1: a fact, because of the of my behavior on Facebook

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Speaker 1: that I have a deep interest in football. Let's say,

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Speaker 1: you know, let's say I've joined the fan page of

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Speaker 1: a couple of football teams, maybe the fan page for

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Speaker 1: the NFL itself, and that maybe even some fantasy football leagues.

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Speaker 1: Things like that, and Facebook Facebook says, all right, well,

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Speaker 1: clearly this guy's nuts about football. So he's a valuable

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Speaker 1: asset to anyone who would advertise to such a market.

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Speaker 1: Right now, let's say that you're making lots and lots

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Speaker 1: of phone calls to your buddy Billy, And so Facebook's

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Speaker 1: now got you know you're using a Facebook phone. Facebook

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Speaker 1: looks and says, hey, look this, this guy who's really

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Speaker 1: crazy about football is always calling his buddy Bill. You

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Speaker 1: know what, I bet that they share a lot in

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Speaker 1: common and there's a good chance that Bill is also

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Speaker 1: a big football fans. So how about we sell Bill

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Speaker 1: two advertisers as well, and maybe there maybe you have

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Speaker 1: different tiers of people like you have the one tier

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Speaker 1: where you're like, these are the people who are definitely

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Speaker 1: interested in your product because they have demonstrated that on Facebook.

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Speaker 1: Here's the next tier down, which are the context of

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Speaker 1: those people who are the really valuable audience. These are

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Speaker 1: people who are likely to also value your product, but

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Speaker 1: we aren't assure. Yeah, like, I mean, that's just an example.

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Speaker 1: I'm just pulling that out of the air. That could

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Speaker 1: be miles away from what anyone's thinking, but it's the

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Speaker 1: source of stuff we have to worry about. You know,

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Speaker 1: how much are the information of ourselves are we giving away?

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Speaker 1: And how much information about the people we know do

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Speaker 1: we give away? Yeah? Yeah, well really that could be

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Speaker 1: anyone though, I mean It's funny because the Facebook aspect

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Speaker 1: of it, because there have been so many concerns with

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Speaker 1: Facebook dot Com and privacy users privacy in the past.

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Speaker 1: It really the same things could be asked of any

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Speaker 1: carrier or provider of application, because there's there's really no

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Speaker 1: telling what kind of information these applications are sending back.

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Speaker 1: And I wouldn't I wouldn't uh say that we should

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Speaker 1: all go out screaming in the streets and bash our

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Speaker 1: smartphones into you know, lead and glass, inert pieces of

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Speaker 1: uh trash simply because of this. I mean, I don't

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Speaker 1: think it's that kind of thing, is uh rampant or

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Speaker 1: anything like that. I just think, you know, it's funny

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Speaker 1: that Facebook makes us suddenly go, hey, well, how's Facebook

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Speaker 1: gonna you know, if we have a Facebook phone, you know,

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Speaker 1: what will they do with our privacy? But I'm going, well,

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Speaker 1: you know, why couldn't that be said of you know,

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Speaker 1: any of the providers. They have the messages that travel

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Speaker 1: across the network on encrypted um and uh you know,

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Speaker 1: there there's information. I saw somebody recently say, um, you

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Speaker 1: need to be careful when you turn in your old

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Speaker 1: phone because you know, if you don't clear out your

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Speaker 1: address book. What what information is stored in the phone's

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Speaker 1: architecture itself, the memory inside the phone. If you do,

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Speaker 1: do you actually clean it out or do you just

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Speaker 1: turn it back in and hope they're going to to

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Speaker 1: mulch it. Well, you make an ex in point because obviously,

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Speaker 1: uh Android, Google Android, that the way Google Android works

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Speaker 1: is you you give that information over to Google. You

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Speaker 1: create a Google account if you don't have one already.

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Speaker 1: Your contact list is stored in the cloud with Google. Yes,

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Speaker 1: you know, all of the apps you buy are stored

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Speaker 1: in the cloud with Google. So ultimately Google has that information.

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Speaker 1: And there there have been people who have brought this

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Speaker 1: to light saying this is this should be concern people

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Speaker 1: at least on some level. You should at least ask

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Speaker 1: questions like what are you doing with this data? Uh?

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Speaker 1: And some people definitely hold Google under close scrutiny and

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Speaker 1: they are very suspicious of the company and its goals. Right,

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Speaker 1: But I don't think that even that being said, and

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Speaker 1: despite how pervasive Google is and how a lot of

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Speaker 1: people would say that at this point, we the Internet

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Speaker 1: would not be the same without Google, Like if Google

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Speaker 1: went away, the Internet would really suffer. Um, I still

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Speaker 1: think that people hold Facebook to an even higher level

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Speaker 1: of suspicion, mainly because of its fairly well publicized bouts

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Speaker 1: with privacy issues, particularly the fact that in a Facebook

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Speaker 1: profile you have to opt out of so many things

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Speaker 1: in order to keep them private. You know. It's that

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Speaker 1: that a lack of privacy is the standard at Facebook.

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Speaker 1: It's only by going through and tweaking your settings that

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Speaker 1: you are able to control your privacy. Otherwise you have

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Speaker 1: a very public uh profile out there, including things like

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Speaker 1: Facebook Places, which brought up a whole new rash of

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Speaker 1: questions and concerns. And I would imagine that Facebook Places

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Speaker 1: would be very heavily integrated into a Facebook phone, almost

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Speaker 1: to the point where you could, you know, just ad

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Speaker 1: a touch of an app, you would you would automatically

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Speaker 1: update your Facebook profile to explain where you were like that.

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Speaker 1: That would that makes perfect sense to me from a

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Speaker 1: the perspective of Facebook. Well, yeah, I mean it's already

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Speaker 1: been um, it's already been noted. Uh Rearan and McCarthy

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Speaker 1: in their article. Uh we're pointing out that over the

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Speaker 1: last little while here they've Facebook has updated its application

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Speaker 1: to include all sorts of uh, you know, other bells

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Speaker 1: and whistles like geotagging. Um. And it's the the application

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Speaker 1: has become more a little bit more like an operating system,

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Speaker 1: they had said. Plus they bought a company called hot Potato,

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Speaker 1: which is uh sort of you know, it's the geolocation

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Speaker 1: checking in uh feature that you see on on so

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Speaker 1: many applications these days. Um. You know, so that that

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Speaker 1: will give advertisers more information about where you are, so

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Speaker 1: they could say, hey, well, if you're down here at

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Speaker 1: this corner, you should come eat at my restaurant. You know,

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Speaker 1: we're right down the block. Um. But I definitely think

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Speaker 1: it's the kind of thing that is that's not kind

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Speaker 1: of go away. Now that that Apple and Google have

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Speaker 1: embraced it. UM, I did note and Electronista UM that

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Speaker 1: Research in Motion, the parent company of BlackBerry, has just

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Speaker 1: as of the this recording, just released the BlackBerry Advertising Service,

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Speaker 1: which is they're going to split revenue um sixty forty.

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Speaker 1: The advertisers get the revenue, but they're going to give

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Speaker 1: more control over the the application of advertising to the

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Speaker 1: app developers. UM. Not as much as you know, Apple

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Speaker 1: has control over what can be done over the user experience.

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Speaker 1: Course that that will be interesting to see what happens

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Speaker 1: with that. But now that that BlackBerry, Google, and Apple

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Speaker 1: are all into the mobile advertising market, companies such as

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Speaker 1: Facebook and Amazon and other people who are large media

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Speaker 1: companies um, online media companies are probably going to look

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Speaker 1: to that as a source of of revenue and find

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Speaker 1: ways to uh gain the presence in there and to

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Speaker 1: bolster their things. And I know that people are probably saying,

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Speaker 1: you know, Amazon, where are you talking kind of out

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Speaker 1: but I've seen some signs that they are interested in

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Speaker 1: developing other kinds of applications for mobile use, So it's

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Speaker 1: not out of the question. I don't think they would

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Speaker 1: be as far you know, I don't think there would

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Speaker 1: be an Amazon phone, at least not before Facebook comes

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Speaker 1: out with one. But I wouldn't imagine that it's out

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Speaker 1: of the question. I mean, it's always looking for new

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Speaker 1: and innovative ways to make money there. They're hosting service

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Speaker 1: application service, UM. You know, it's not something that I

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Speaker 1: wouldn't necessarily consider an Amazon core business, but it's something

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Speaker 1: that they're in well, and they're already integrated with other

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Speaker 1: operating systems pretty well. I mean the Android system in

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Speaker 1: particular has Amazon integration where you can very quickly with

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Speaker 1: like a one touch thing by Songs off of Amazon,

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Speaker 1: for example, which is just that that's just a tiny

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Speaker 1: baby step of integration. Uh. Well, they're definitely open minded

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Speaker 1: enough to make kindle applications for Android and the iOS.

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Speaker 1: So and that kind of leads into the discussion about

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Speaker 1: why Facebook might be backing away from from these claims,

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Speaker 1: why Facebook might be denying them. It's part of it

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Speaker 1: is just that they're treading a very thin line here, right.

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Speaker 1: They have to be really careful. They want to be

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Speaker 1: able to From a business perspective, it makes sense that

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Speaker 1: you want to be able to integrate your your services

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Speaker 1: more tightly into the hardware so that you have you

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Speaker 1: can gather as much information as possible and solid advertisers.

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Speaker 1: Let's just boil it down to that. But on the

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Speaker 1: other hand, you don't want to uh antagonize, right, Apple

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Speaker 1: and Android and all of these other providers that are

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Speaker 1: are you know, these other uh smartphone operating system developers.

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Speaker 1: Let's say that that provide you a platform for your app.

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Speaker 1: You don't want to alienate them. You don't want to

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Speaker 1: give them a reason to no longer allow your app

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Speaker 1: on their devices. Even though I seriously doubt that would

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Speaker 1: ever happen because Facebook is so popular it would really

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Speaker 1: surprise me. I mean, granted, I guess people could always

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Speaker 1: navigate to the website via the mobile browser, but it

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Speaker 1: would really surprised me to see those apps go away.

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Speaker 1: But you don't want to antagonize them, because even if

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Speaker 1: you come out with your own branded phone, you're going

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Speaker 1: to be competing directly with them in the marketplace. And

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Speaker 1: they're big boys. Yes, they Android and Apple have a

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Speaker 1: huge head start. Apple in particular has a huge head start. Um.

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Speaker 1: I mean, Symbion is still the worldwide dominant operating system

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Speaker 1: for mobile phones, but in the United States, Apple and

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Speaker 1: Android and to a lesser extent, rim are really they're

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Speaker 1: the big players for the smartphone space anyway. And of

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Speaker 1: course there's the Windows Mobile seven. You know that that's

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Speaker 1: due out very soon and that may make a big impact.

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Speaker 1: I've heard some positive things there. Yeah, I've seen the

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Speaker 1: demos I've seen of it look very good. Whether or

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Speaker 1: not it's going to be good enough to to really

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Speaker 1: go toe to toe with the other big boys that will,

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Speaker 1: I think that will mainly depend upon the hardware. Like really,

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Speaker 1: that's the big advantage Apple has over everyone else is

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Speaker 1: that they they've dictated exactly what the hardware and software

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Speaker 1: are going to do, and so they have full control

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00:24:01,600 --> 00:24:05,439
Speaker 1: of the package, whereas uh, Android and Windows Phone seven

404
00:24:05,600 --> 00:24:09,680
Speaker 1: are somewhat slave to whatever the handset manufacturers are able

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Speaker 1: to come up with rems. Like Apple, but then rem

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00:24:12,720 --> 00:24:15,800
Speaker 1: is more of the enterprise, not the consumer, and they

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Speaker 1: have far more models out to right then than if

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Speaker 1: the iPhone. Right. So, so one argument I've seen is

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Speaker 1: that Facebook might target a more like a messenger phone,

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Speaker 1: you know, a feature phone that's not a full smartphone. Yeah,

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Speaker 1: that's what the the inc information suggests that it is. Specifically,

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Speaker 1: it's it's smarter than a dumb phone, but not as

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Speaker 1: smart as a smartphone, right exactly, which which might be

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Speaker 1: the right target, because then you're hitting people who maybe

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Speaker 1: maybe they don't want to shell out the money for

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Speaker 1: a full smartphone where they're not going to use the

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Speaker 1: other applications, right, So it makes sense to to take

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Speaker 1: aim for that market, and then you don't really directly

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Speaker 1: compete with Apple and Android because it's it's a different market.

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Speaker 1: It's like, you know, it's like sports cars versus compact cars.

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Speaker 1: I mean, it's two totally different markets. You don't have

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Speaker 1: to worry. You're not in direct competition with one another. Yeah,

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Speaker 1: you're both vehicles, but you're not aiming at the same market.

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Speaker 1: One's aiming at people in their midlife crisis and the others.

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Speaker 1: I mean, it's smart, same people. Um hey, I'm getting

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Speaker 1: up there. Man, I'm going to be in sports car

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Speaker 1: bode before you know it. But well, okay, there's that,

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Speaker 1: but you know details details, You could buy one and

429
00:25:24,840 --> 00:25:27,960
Speaker 1: sit in it, right, So I thought I would also

430
00:25:28,119 --> 00:25:32,800
Speaker 1: quote Zuckerberg. He actually did an interview with tech Crunch

431
00:25:33,200 --> 00:25:35,680
Speaker 1: to kind of clear the air about what was going

432
00:25:35,720 --> 00:25:38,720
Speaker 1: on here. Did you read about this? No, well I didn't. Yeah,

433
00:25:38,840 --> 00:25:41,280
Speaker 1: a little bit about it, but you didn't actually, Yeah.

434
00:25:41,440 --> 00:25:44,480
Speaker 1: So here's here's what he says. And this is this

435
00:25:44,560 --> 00:25:47,399
Speaker 1: kind of goes back to the whole contradictory message that

436
00:25:47,480 --> 00:25:49,440
Speaker 1: Facebook is giving. You know, it's one of those things

437
00:25:49,440 --> 00:25:53,080
Speaker 1: where you use so much jargon and double speak that

438
00:25:53,520 --> 00:25:56,200
Speaker 1: at the end you're not really sure what exactly was said.

439
00:25:56,600 --> 00:25:59,920
Speaker 1: So here's here's what Zuckerberg had to say. At the

440
00:26:00,080 --> 00:26:02,280
Speaker 1: end of the day, when people say building a phone,

441
00:26:02,440 --> 00:26:05,520
Speaker 1: they actually can mean very different things internally, the way

442
00:26:05,520 --> 00:26:07,920
Speaker 1: we talk about our strategy, it's like the opposite of that.

443
00:26:08,240 --> 00:26:11,439
Speaker 1: Our whole strategy is not to build any specific device

444
00:26:11,600 --> 00:26:14,640
Speaker 1: or integration or anything like that, because we're not trying

445
00:26:14,680 --> 00:26:16,840
Speaker 1: to compete with Apple or the Droid or any other

446
00:26:16,880 --> 00:26:21,600
Speaker 1: hardware manufacturer for that matter. Take instant personalization. Our goal

447
00:26:21,640 --> 00:26:23,639
Speaker 1: is to make it so there's as little friction as

448
00:26:23,640 --> 00:26:26,199
Speaker 1: possible to having a social experience. So you go to

449
00:26:26,320 --> 00:26:29,000
Speaker 1: some apps, take Rotten Tomatoes, which we just launched last week.

450
00:26:29,160 --> 00:26:31,400
Speaker 1: If people had to click the blue button to connect,

451
00:26:31,600 --> 00:26:33,760
Speaker 1: then some percent of them would, but it would take

452
00:26:34,080 --> 00:26:36,480
Speaker 1: it would be the minority because you don't know exactly

453
00:26:36,480 --> 00:26:38,280
Speaker 1: what you're going to get before you click it. If

454
00:26:38,280 --> 00:26:40,480
Speaker 1: you had to put up some modal dialogue, then that

455
00:26:40,520 --> 00:26:44,240
Speaker 1: would be crazy from a u X perspective. But the

456
00:26:44,280 --> 00:26:46,919
Speaker 1: fact that they can do that instant integration for the

457
00:26:47,000 --> 00:26:49,080
Speaker 1: users that want it means that everyone has a good

458
00:26:49,080 --> 00:26:51,399
Speaker 1: experience as soon as they get there. On phones, we

459
00:26:51,400 --> 00:26:53,879
Speaker 1: can actually do something better. We can do a single

460
00:26:54,040 --> 00:26:57,040
Speaker 1: sign on if we do a good integration with a phone,

461
00:26:57,359 --> 00:26:59,560
Speaker 1: rather than just something where you go to an app

462
00:26:59,600 --> 00:27:01,840
Speaker 1: and it's to Magley Social or having to sign into

463
00:27:01,840 --> 00:27:04,880
Speaker 1: each app individually. Those are the two options on the web.

464
00:27:04,880 --> 00:27:06,800
Speaker 1: Why not for mobile just make it so that you

465
00:27:06,840 --> 00:27:09,520
Speaker 1: log into your phone once and then everything that you

466
00:27:09,640 --> 00:27:12,840
Speaker 1: do on your phone is social. Okay, do you spot

467
00:27:13,000 --> 00:27:17,959
Speaker 1: the incredible contradiction there? He says at the top of

468
00:27:18,000 --> 00:27:21,240
Speaker 1: it that they are not looking to create any sort

469
00:27:21,280 --> 00:27:24,320
Speaker 1: of integration, but at the end of it, he's talking

470
00:27:24,359 --> 00:27:27,440
Speaker 1: about having a phone where as soon as you turn

471
00:27:27,440 --> 00:27:31,439
Speaker 1: your phone on, you're signed into these different apps that

472
00:27:31,520 --> 00:27:34,760
Speaker 1: normally you would have to sign in individually. I would

473
00:27:34,800 --> 00:27:38,159
Speaker 1: wager that Facebook is hedging its bets. I would wager

474
00:27:38,200 --> 00:27:40,640
Speaker 1: that that's saying two things that are opposite of each other.

475
00:27:41,520 --> 00:27:44,879
Speaker 1: That is, that is integration. I mean that is what

476
00:27:45,000 --> 00:27:47,280
Speaker 1: that that that's true. But what I'm what I'm thinking

477
00:27:47,400 --> 00:27:51,760
Speaker 1: is that it's it's entirely possible that uh, Facebook is

478
00:27:51,800 --> 00:27:57,200
Speaker 1: considering a phone of its own and making the other

479
00:27:57,240 --> 00:28:02,119
Speaker 1: apps so integral into their own environments that really you

480
00:28:02,119 --> 00:28:04,879
Speaker 1: could do you could be that immersed regardless of what

481
00:28:04,920 --> 00:28:07,719
Speaker 1: platform you're on. That's kind of how I hear it.

482
00:28:07,760 --> 00:28:11,199
Speaker 1: But yes, directly speaking, he was saying that. And by

483
00:28:11,200 --> 00:28:13,320
Speaker 1: the way, u X, for those of you who don't know,

484
00:28:13,400 --> 00:28:16,679
Speaker 1: is user experience because I guess you e sounds kind

485
00:28:16,680 --> 00:28:20,439
Speaker 1: of lame. I guess maybe I don't know someone's going

486
00:28:20,480 --> 00:28:22,639
Speaker 1: to write in and explain what you actually means. And

487
00:28:22,680 --> 00:28:24,560
Speaker 1: that's why that's true. It could be taken maybe could

488
00:28:24,600 --> 00:28:28,879
Speaker 1: just be anyway. So that's what that's what Zuckerberg had

489
00:28:28,880 --> 00:28:31,160
Speaker 1: to say to tech Crunch. Um, you can actually read

490
00:28:31,359 --> 00:28:33,320
Speaker 1: more of it at tech Crunch. They they've got a

491
00:28:33,359 --> 00:28:36,520
Speaker 1: whole thing on it there. But it's Yeah, it's interesting

492
00:28:36,600 --> 00:28:38,960
Speaker 1: to see the kind of dance that that Facebook is

493
00:28:39,000 --> 00:28:42,760
Speaker 1: doing right now around the whole mobile phone issue. And Uh,

494
00:28:42,960 --> 00:28:45,440
Speaker 1: what I'm curious to hear about is whether our listeners

495
00:28:45,480 --> 00:28:48,880
Speaker 1: would consider buying a Facebook branded phone. Are you concerned

496
00:28:48,920 --> 00:28:51,760
Speaker 1: about the privacy issues? It may be that the privacy

497
00:28:51,800 --> 00:28:54,040
Speaker 1: issues we've talked about aren't really issues. It may be

498
00:28:54,200 --> 00:28:57,880
Speaker 1: that there is no danger of that. It would surprise me,

499
00:28:57,960 --> 00:29:01,560
Speaker 1: but it's possible. Uh, would you find that sort of

500
00:29:01,600 --> 00:29:03,880
Speaker 1: phone interesting? Are you the kind of person who you

501
00:29:03,960 --> 00:29:07,280
Speaker 1: don't have a smartphone, but you would like your regular

502
00:29:07,280 --> 00:29:09,560
Speaker 1: phone to do something more than what it already does

503
00:29:09,640 --> 00:29:11,640
Speaker 1: you kind of want something in the middle. Does this

504
00:29:11,680 --> 00:29:15,760
Speaker 1: actually sound like an interesting device to you? Or are

505
00:29:15,800 --> 00:29:17,520
Speaker 1: you the kind of person who you would just prefer

506
00:29:17,560 --> 00:29:21,000
Speaker 1: to have a Facebook app on your existing phone and

507
00:29:21,040 --> 00:29:24,360
Speaker 1: not have like a fully integrated phone. Yeah, I think

508
00:29:24,400 --> 00:29:27,240
Speaker 1: for me it would it would be something like the Ladder.

509
00:29:27,440 --> 00:29:31,480
Speaker 1: I'm I'm more interested in the multiple functionality of you know,

510
00:29:31,760 --> 00:29:35,920
Speaker 1: as a full on, full fledged smartphone. UM. The idea

511
00:29:35,960 --> 00:29:39,400
Speaker 1: of having Facebook so fully integrated to the point where

512
00:29:39,440 --> 00:29:42,840
Speaker 1: they can be of more have more control over the experience,

513
00:29:43,400 --> 00:29:45,640
Speaker 1: UM seems like a good idea if you're really into

514
00:29:45,720 --> 00:29:49,760
Speaker 1: Facebook all that much. But uh, you know, there it's

515
00:29:49,800 --> 00:29:54,960
Speaker 1: going to be interesting when diaspora or diaspora actually starts

516
00:29:55,040 --> 00:29:59,840
Speaker 1: up to see if there is the uh an x

517
00:30:00,080 --> 00:30:04,240
Speaker 1: this or a co joining thing where people are on

518
00:30:04,280 --> 00:30:07,520
Speaker 1: that network too, and if you know, other social networks

519
00:30:07,520 --> 00:30:11,480
Speaker 1: can start making inroads on Facebook's turf. UM, I think

520
00:30:11,560 --> 00:30:14,120
Speaker 1: more people would be inclined to buy something on which

521
00:30:14,160 --> 00:30:17,240
Speaker 1: they could use more than one social networking service. It's

522
00:30:17,240 --> 00:30:20,240
Speaker 1: definitely an uphill battle because the biggest, the biggest draw

523
00:30:20,320 --> 00:30:23,640
Speaker 1: to Facebook is that everybody's on Facebook. Yes, you know,

524
00:30:23,920 --> 00:30:26,040
Speaker 1: everyone's on everything else too. You would have to you

525
00:30:26,040 --> 00:30:30,280
Speaker 1: would have to have a mass exodus, really, or at

526
00:30:30,320 --> 00:30:33,440
Speaker 1: least you would have to have a lot of people

527
00:30:33,600 --> 00:30:37,000
Speaker 1: change in order for it to really take effect, or

528
00:30:37,280 --> 00:30:40,000
Speaker 1: the other way around it is you could get you

529
00:30:40,000 --> 00:30:43,120
Speaker 1: could convince new users, people who are not not yet

530
00:30:43,520 --> 00:30:47,240
Speaker 1: integrated into some online social network to adopt a different

531
00:30:47,280 --> 00:30:50,040
Speaker 1: model than Facebook. Then you have then you're going to

532
00:30:50,240 --> 00:30:52,640
Speaker 1: be able to survive. It's just gonna be something that

533
00:30:52,800 --> 00:30:55,160
Speaker 1: you have to play the waiting game. You essentially wait

534
00:30:55,200 --> 00:30:57,800
Speaker 1: for all the Facebook users to die out and then

535
00:30:57,920 --> 00:31:00,880
Speaker 1: you become the new thing. But yeah, getting people to

536
00:31:00,960 --> 00:31:06,040
Speaker 1: move is really tough. Anyway, we have run out of times.

537
00:31:06,080 --> 00:31:08,200
Speaker 1: We're gonna wrap this up. It will be interesting to

538
00:31:08,200 --> 00:31:10,320
Speaker 1: see if Facebook does come out with a branded phone,

539
00:31:10,360 --> 00:31:14,600
Speaker 1: and if it does, how successful or unsuccessful and ultimately

540
00:31:14,680 --> 00:31:18,760
Speaker 1: will be Uh. Facebook's managed to triumph in the face

541
00:31:18,800 --> 00:31:22,160
Speaker 1: of adversity many times before, so we'll see. And if

542
00:31:22,160 --> 00:31:24,640
Speaker 1: you guys have any questions or comments, especially if you

543
00:31:24,680 --> 00:31:26,240
Speaker 1: want to tell us about whether or not you would

544
00:31:26,240 --> 00:31:29,480
Speaker 1: adopt a Facebook phone, let us know on Twitter or

545
00:31:29,520 --> 00:31:34,160
Speaker 1: on Facebook. Our handle at both is tech Stuff hs W,

546
00:31:35,000 --> 00:31:37,640
Speaker 1: or you can email us. Our address is tech Stuff

547
00:31:37,840 --> 00:31:39,880
Speaker 1: at how stuff works dot com and Chris and I

548
00:31:39,880 --> 00:31:46,080
Speaker 1: will talk to you again really soon if you're a

549
00:31:46,160 --> 00:31:48,040
Speaker 1: tech stuff and be sure to check us out on

550
00:31:48,080 --> 00:31:51,960
Speaker 1: Twitter Tech Stuff hs WSR handle, and you can also

551
00:31:52,080 --> 00:31:55,080
Speaker 1: find us on Facebook at Facebook dot com slash tech

552
00:31:55,160 --> 00:31:59,240
Speaker 1: Stuff h s W. For more on this and thousands

553
00:31:59,240 --> 00:32:02,160
Speaker 1: of other topics, visit how Stuff Works dot com and

554
00:32:02,200 --> 00:32:04,040
Speaker 1: be sure to check out the new tech stuff blog

555
00:32:04,320 --> 00:32:11,320
Speaker 1: now on the House Stuff Works homepage, brought to you

556
00:32:11,360 --> 00:32:14,720
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557
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Speaker 1: you