WEBVTT - What's the deal with the Facebook Phone? 0:00:00.320 --> 0:00:02.880 Brought to you by the reinvented two thousand twelve camera. 0:00:03.240 --> 0:00:08.959 It's ready. Are you get in touch with technology? With 0:00:09.080 --> 0:00:18.000 tech Stuff from how stuff Works dot com. Well, hello there, 0:00:18.239 --> 0:00:20.560 welcome to tech stuff. My name is Chris Poulette, and 0:00:20.600 --> 0:00:23.400 I am an editor here and how stuff works dot Com. 0:00:23.400 --> 0:00:26.279 Sitting across from me as he always does, his senior writer, 0:00:26.360 --> 0:00:29.840 Jonathan Strickland, What is steel compared to the hand that 0:00:29.880 --> 0:00:32.479 wields it. Look at the strength in your body, the 0:00:32.560 --> 0:00:36.200 desire in your heart. I gave you this such a waste. 0:00:36.600 --> 0:00:44.120 Contemplate this on the tree of whoa whoa, whoa. Well, 0:00:44.200 --> 0:00:46.559 we have two quotes for the price of one much 0:00:46.640 --> 0:00:49.159 shorter than the other, right, right, So you get a 0:00:49.200 --> 0:00:54.200 bonus point if you you can name the other quote 0:00:54.240 --> 0:00:56.320 a third of a point. I shall I shall go 0:00:56.400 --> 0:00:58.520 so far as to say that quote has nothing to 0:00:58.560 --> 0:01:01.000 do with what we will be talking about today. No, 0:01:01.200 --> 0:01:04.399 because we are talking about the Facebook phone, or the 0:01:04.520 --> 0:01:07.440 rumor I should say, have a Facebook phone right now. 0:01:07.640 --> 0:01:15.399 This rumor first surfaced on the interwebs back on September nineteen. Yes, 0:01:15.600 --> 0:01:19.720 that's when a certain Mr Arrington of tech crunch fame 0:01:20.319 --> 0:01:25.040 wrote about this, quoting some unnamed sources stating that Facebook 0:01:25.120 --> 0:01:28.560 was looking into designing a phone, and uh. It was 0:01:28.680 --> 0:01:32.080 quick to point out even in that piece that Facebook 0:01:32.120 --> 0:01:35.760 was not necessarily looking at designing the actual hardware, but 0:01:35.920 --> 0:01:39.560 rather designing some sort of interface or operating system that 0:01:39.600 --> 0:01:43.520 would rest on that hardware and be deeply integrated in 0:01:43.560 --> 0:01:47.640 the handset, so that Facebook would kind of guide your 0:01:47.720 --> 0:01:51.560 entire experience on the phone. Yes, and that's really not unusual. 0:01:51.920 --> 0:01:55.360 Um no, no, Apple and Google are both doing that. Yes, 0:01:55.440 --> 0:02:01.480 absolutely sou So the question is are they actually going 0:02:01.680 --> 0:02:05.360 to do that, And the answer is definitively maybe. Yeah. 0:02:05.560 --> 0:02:08.720 Here's the thing is that Facebook came out very quickly 0:02:08.760 --> 0:02:11.440 after this report was published on tech Crunch to deny 0:02:11.600 --> 0:02:14.480 the claims, but they denied it in such a way 0:02:14.520 --> 0:02:18.880 that it sounded almost like it was arguing semantics, like 0:02:18.880 --> 0:02:21.200 like they were saying, no, no, we're not designing an 0:02:21.200 --> 0:02:24.600 interface for a phone. We're just developing some new interfaces 0:02:24.639 --> 0:02:27.680 to go with smartphones. And you think, wait, that's what 0:02:27.720 --> 0:02:29.560 we said you were doing, and like no, no, no, 0:02:29.639 --> 0:02:34.239 look over here, it's a picture of Chewbacca. Uh yeah, 0:02:34.360 --> 0:02:38.160 it was the Chewbacca defense. It was um uh, it 0:02:38.200 --> 0:02:42.480 definitely seemed like they were the Facebook executives were trying 0:02:42.480 --> 0:02:46.399 to back away from something while not categorically denying it. 0:02:46.960 --> 0:02:51.280 Um and the Arrington had some interesting evidence to to 0:02:51.400 --> 0:02:53.359 point to. I mean evidence in the loosest sense of 0:02:53.440 --> 0:02:56.000 circumstantial evidence, I guess is what you would call it. 0:02:56.680 --> 0:02:59.880 And part of that was that he had suspected that 0:03:00.040 --> 0:03:04.200 who Facebook employees, in particular two very high ranking ones. 0:03:04.760 --> 0:03:08.440 We're working on this project. Yes, Joe Hewitt and Matthew 0:03:09.240 --> 0:03:12.280 Papas actually have no idea how to say his name 0:03:12.280 --> 0:03:16.400 because I'm not Greek. Well, but both neither of those 0:03:16.440 --> 0:03:22.720 two gentlemen are strangers to the smartphone software designing world. 0:03:23.480 --> 0:03:27.919 That's true. Hewitt actually was one of the people who 0:03:27.919 --> 0:03:32.960 worked on the Firefox browser and and so he he 0:03:33.040 --> 0:03:38.880 was developing Facebook applications for iPhone and things like that, 0:03:38.960 --> 0:03:42.200 and then apparently got kind of tired of doing that. Um. 0:03:43.000 --> 0:03:47.640 So Arrington suggests that Hewitt may be working on this 0:03:47.720 --> 0:03:50.920 new interface for a phone, like a Facebook branded phone. 0:03:51.160 --> 0:03:54.040 Uh uh, Matthew, because I'm going to say Matthew just 0:03:54.080 --> 0:03:56.240 because I don't want to ruin the guy's last name. 0:03:56.600 --> 0:03:58.560 I like I said, I'm not exactly certain how to 0:03:58.680 --> 0:04:01.280 how to pronounce it, because my Greek is terrible. My 0:04:01.320 --> 0:04:04.080 Greek is worse than Shakespeare's and his was pretty darn bad. 0:04:05.160 --> 0:04:10.000 So Matthew was. He came from Google. Actually, he had 0:04:10.040 --> 0:04:14.040 been working on the Google Chrome operating system, and Facebook 0:04:14.120 --> 0:04:18.919 lured him away. And Errington said, what could possibly lure 0:04:19.000 --> 0:04:23.599 an engineer away from a project as interesting as the 0:04:23.600 --> 0:04:27.480 Google Chrome operating system appears to be? And so Errington's 0:04:27.480 --> 0:04:29.719 conclusion is that the Facebook phone is really the only 0:04:29.760 --> 0:04:35.880 thing that makes sense to him. So again, circumstantial evidence. Yeah, 0:04:35.880 --> 0:04:38.080 and at this point, um, at at the point at 0:04:38.080 --> 0:04:42.000 which we are recording this in late September, um, there's 0:04:42.040 --> 0:04:45.960 nothing that definitively states that Facebook of the company is 0:04:46.040 --> 0:04:49.400 going to build a phone for certain, I mean, even 0:04:49.400 --> 0:04:51.800 with a with a partner, that Facebook will come out 0:04:51.839 --> 0:04:54.440 with a phone that has Facebook on it, you know, 0:04:54.480 --> 0:04:57.080 on it as its brand name. Sorry that that didn't 0:04:57.080 --> 0:04:58.760 come out right. Well no, no, but just just like 0:04:58.880 --> 0:05:02.520 just like the HTS, the phones and other Android phones, 0:05:02.960 --> 0:05:05.680 some of them have the Google brand printed on the phone. 0:05:05.680 --> 0:05:09.080 Even though Google did not design the hardware. In some cases, 0:05:09.120 --> 0:05:13.760 Google had a very tight relationship with that hardware provider, 0:05:14.200 --> 0:05:17.279 so that the specs would would be able to support 0:05:17.440 --> 0:05:21.719 the operating system Google was developing, but ultimately that design 0:05:21.800 --> 0:05:24.360 rests with another company. That's the same sort of thing 0:05:24.360 --> 0:05:27.480 that we're talking about here is that, Uh, we don't 0:05:27.560 --> 0:05:29.360 know if there's going to be a phone that comes 0:05:29.360 --> 0:05:32.239 out that will have Facebook's logo on there as part 0:05:32.279 --> 0:05:38.480 of the phone. But absolutely mobile phones are of different 0:05:38.560 --> 0:05:42.480 sorts are prime targets for Facebook. Um. That's been proven 0:05:42.600 --> 0:05:47.279 through other applications for Android and iPhone and others, um, 0:05:47.360 --> 0:05:52.200 BlackBerry and UM. They actually, you know, this is something 0:05:52.240 --> 0:05:54.520 that they really want to do, uh, and they want 0:05:54.560 --> 0:05:57.000 to be available to mobile customers. And I think mobile 0:05:57.000 --> 0:06:01.120 customers want to have access to Facebook, especially with smartphones 0:06:01.160 --> 0:06:04.839 that have a more rich experience than than others might 0:06:05.440 --> 0:06:11.320 um with the hardware. Um. The thing is, why would 0:06:11.320 --> 0:06:14.640 Facebook want to do this other than you know, hey, 0:06:14.720 --> 0:06:18.760 we just like to make the service convenient for our subscribers, right. Um, 0:06:19.040 --> 0:06:22.320 it's really the same reason that Google and Apple want 0:06:22.400 --> 0:06:25.640 to do it. It's it's really and it's really a 0:06:25.640 --> 0:06:30.920 an attempt to define what your mobile online experience will be. 0:06:31.400 --> 0:06:34.440 Right because right now, Facebook is an app that rests 0:06:34.600 --> 0:06:38.159 on another operating system, as a foundation. So Facebook is 0:06:38.200 --> 0:06:40.120 just one of those things, or the Facebook apps are 0:06:40.160 --> 0:06:42.240 just one of those apps you can access along with 0:06:42.279 --> 0:06:45.120 all the other dozens of apps or hundreds or thousands 0:06:45.120 --> 0:06:47.640 of apps that are available for whatever platform you're using. 0:06:49.040 --> 0:06:52.080 But once you close out the app, unless you're using 0:06:52.080 --> 0:06:55.600 other apps that connect to Facebook through Facebook connect, uh, 0:06:56.360 --> 0:06:59.760 you're not. You're no longer really relying on the platform anymore. Right. 0:07:00.240 --> 0:07:03.240 Facebook would like to create just like any other company 0:07:03.360 --> 0:07:06.280 would like to create a platform where everything is kind 0:07:06.279 --> 0:07:10.560 of integrated through their system. It gives them way more information, 0:07:10.600 --> 0:07:16.400 which as we know Facebook, for Facebook, information is money. Yes, 0:07:17.320 --> 0:07:22.600 And uh, I think that Marguerite Reardon and Caroline McCarthy, 0:07:22.640 --> 0:07:25.480 I've seen it, probably have hit the nail on the 0:07:25.520 --> 0:07:29.440 head on exactly what type of information Facebook would like 0:07:29.480 --> 0:07:34.280 to make available to you. And uh, it's uh, it's 0:07:34.280 --> 0:07:36.720 not really Farmville, although I think there's an app for that. 0:07:37.400 --> 0:07:40.360 Sure for most phones. There is for the the iPhone, 0:07:40.400 --> 0:07:43.440 I know, Um, but no, it's not that at all. 0:07:43.600 --> 0:07:46.320 The information that Facebook wants to make available to you 0:07:46.600 --> 0:07:52.200 is the advertising information. Um. As the they McCarthy and 0:07:52.400 --> 0:07:57.200 uh Reardon cided the International Telecommunications Union, who said that 0:07:58.360 --> 0:08:03.880 five billion people worldwide are using some kind of cell phone, 0:08:04.560 --> 0:08:09.320 and um, you know, since Google and Apple control the 0:08:09.360 --> 0:08:13.280 ad markets on their respective platforms, Facebook, it would make 0:08:13.320 --> 0:08:18.000 sense that Facebook would want to leverage the plus million 0:08:18.160 --> 0:08:22.640 users who are using their website, um as they already 0:08:22.640 --> 0:08:26.280 do and with their partners to try to advertise to them. 0:08:26.720 --> 0:08:29.440 And so this would be a prime opportunity for them 0:08:29.440 --> 0:08:31.440 to do that. And that's a good reason for them 0:08:31.440 --> 0:08:34.280 to actually make the move, right. It's another revenue generator 0:08:34.320 --> 0:08:37.000 if they if they were able to leverage the mobile 0:08:37.520 --> 0:08:42.079 world the way they have the web, just the basic web, Uh, 0:08:42.480 --> 0:08:46.120 they could you know, you're talking about the potentially doubling 0:08:46.280 --> 0:08:50.280 or more your revenue. I mean that's and keep in 0:08:50.320 --> 0:08:53.600 mind this is still a private company. This is that's 0:08:53.640 --> 0:08:55.400 when you sit there and think about how much money 0:08:55.600 --> 0:09:00.760 Zuckerberg is supposedly worse. That's a mark Zuckerberg founder and 0:09:00.800 --> 0:09:03.960 CEO well some some some dispute the founder part, but 0:09:04.040 --> 0:09:08.760 definitely ceo Facebook. He um. He was recently valued at 0:09:08.920 --> 0:09:11.760 some crazy I think it was like twenty four billion dollars. 0:09:11.800 --> 0:09:15.120 It was a it was a really high amount. Um. 0:09:15.240 --> 0:09:19.040 You would imagine that number would grow exponentially or at least, 0:09:19.280 --> 0:09:24.080 maybe not exponentially, but at least linearly from if he 0:09:24.160 --> 0:09:27.040 were able to leverage the mobile world the way he 0:09:27.080 --> 0:09:30.120 has the web world. And you were speaking about seen 0:09:30.200 --> 0:09:34.079 it Seen It also has reports from hardware manufacturers that 0:09:34.160 --> 0:09:39.680 Facebook has Facebook executives have approached them about creating a 0:09:39.720 --> 0:09:43.080 device that would allow Facebook to be deeply integrated into 0:09:43.120 --> 0:09:49.840 the phone's features and article. And in fact, they've gone 0:09:49.880 --> 0:09:51.400 so far seen that actually has gone so far as 0:09:51.480 --> 0:09:55.840 to suggest that, uh, they're working. Facebook's actively working with 0:09:56.240 --> 0:10:01.320 I n Q Mobile, Yes, to create two smartphones that 0:10:01.400 --> 0:10:05.920 will be really heavily Facebook have heavy Facebook integration with 0:10:06.000 --> 0:10:09.480 them that would launch over in Europe in the first 0:10:09.480 --> 0:10:12.680 half and in the United States in the second half. 0:10:14.040 --> 0:10:16.320 And that's funny because uh, and connected to the A, 0:10:16.360 --> 0:10:18.560 T and T network. I just wanted to finish that. Sorry, 0:10:18.600 --> 0:10:22.520 I didn't mean to interrupt at all. Um. Yes, actually, 0:10:22.640 --> 0:10:25.560 uh that goes also along if if you think about 0:10:25.559 --> 0:10:31.319 it with um recent rumors again that Facebook is plotting um, 0:10:31.360 --> 0:10:34.880 and that's a good word plotting, Yes, well, actually in 0:10:34.920 --> 0:10:37.200 a in a good way for them, um, not in 0:10:37.240 --> 0:10:41.120 a sinister sort of way. Um. Seriously planned making plans 0:10:41.120 --> 0:10:44.920 again for an initial public offering of stock. Um that 0:10:44.960 --> 0:10:48.320 would help help them do some um, you know, add 0:10:48.400 --> 0:10:51.640 some badly needed cash for adventure of that sort of 0:10:52.160 --> 0:10:56.320 uh scale. I would imagine. However, the number I saw, 0:10:56.440 --> 0:10:59.080 actually the date I saw on that was when I 0:10:59.080 --> 0:11:00.679 saw that again this morning. So if the phone that 0:11:00.679 --> 0:11:02.840 would mean that the phones would hit, that would be 0:11:02.840 --> 0:11:07.360 before the rumored again again again I p o. There 0:11:07.360 --> 0:11:10.320 are so many rumored I p o s for Facebook 0:11:10.320 --> 0:11:13.480 at this point. Yeah, Facebook, pretty much ever since Facebook 0:11:13.480 --> 0:11:15.880 started taking off, there have been rumors about when they 0:11:15.880 --> 0:11:19.960 would have a public offering, and you've got to I'm 0:11:20.000 --> 0:11:24.280 sure that the investors in Facebook are eagerly anticipating that 0:11:24.360 --> 0:11:27.000 day because it's going to turn them all into even 0:11:27.160 --> 0:11:31.480 more filthy rich people than they already are, because of course, 0:11:31.520 --> 0:11:35.240 you know, Facebook is funded by lots of well now 0:11:35.280 --> 0:11:38.360 it's got revenue, but it was initially funded by by 0:11:38.440 --> 0:11:43.920 some venture capital investors. So but now it's of course, 0:11:44.000 --> 0:11:47.000 it's actually making money. It's not just an unlike Twitter, 0:11:47.240 --> 0:11:49.720 which is a you know, a service that still doesn't 0:11:49.720 --> 0:11:53.240 really have a viable business model, Facebook actually does because 0:11:53.280 --> 0:11:55.760 they make their money through advertising, and of course, and 0:11:55.800 --> 0:11:58.440 that's exactly what we were talking about earlier with Facebook 0:11:58.520 --> 0:12:03.560 using the information you have through your phone, uh as 0:12:03.600 --> 0:12:09.000 another yet another UH commodity to sell to advertisers. And 0:12:09.040 --> 0:12:11.720 in fact that that kind of leads into a discussion 0:12:11.800 --> 0:12:15.800 about things that we need to be concerned about. If 0:12:15.840 --> 0:12:19.240 there is to be a Facebook phone, Yes, and privacy 0:12:19.320 --> 0:12:24.080 is way up there, because Facebook, of course is UH 0:12:24.120 --> 0:12:27.320 infamous really for the way that it handles privacy or 0:12:27.400 --> 0:12:30.760 doesn't handle privacy, depending upon your perspective on the matter. 0:12:31.040 --> 0:12:36.080 And Zuckerberg himself has been known to say in one 0:12:36.120 --> 0:12:41.360 way or another that privacy is a it's an outdated concept, 0:12:41.720 --> 0:12:43.680 you know, and for someone who says that he's actually 0:12:43.679 --> 0:12:48.280 a remarkably private person, but he claims, or he has 0:12:48.320 --> 0:12:52.480 claimed in the past, at least in a circumcans circumspect way, 0:12:52.520 --> 0:12:55.600 that privacy is on the way out, that it's it's 0:12:55.640 --> 0:12:58.920 something that is just not really valued anymore, and so 0:12:59.640 --> 0:13:01.480 UH as a result, you shouldn't have to worry about 0:13:01.480 --> 0:13:04.839 it so much when you're providing services. UM. Now, that's 0:13:05.160 --> 0:13:09.760 landed him and Facebook into some hot water among consumers 0:13:09.760 --> 0:13:14.520 and consumer groups advocacy advocacy groups in the past. So 0:13:15.280 --> 0:13:17.800 I would imagine a Facebook phone would bring even more 0:13:17.920 --> 0:13:21.240 questions because think of it this way. The idea with 0:13:21.760 --> 0:13:26.000 integrating the Facebook elements into the phone, It may have 0:13:26.160 --> 0:13:31.000 things like turning your contact list into a Facebook friends list. Right, So, 0:13:31.080 --> 0:13:33.960 then you start wondering, well, how much of this information 0:13:34.000 --> 0:13:38.800 is Facebook really accessing or capable of accessing? Are they 0:13:38.840 --> 0:13:40.880 able to see who all my friends are? I mean 0:13:40.920 --> 0:13:43.800 imagine they would be able to because it's so deeply 0:13:43.800 --> 0:13:46.640 integrated into Facebook. Would they be able to see who 0:13:46.720 --> 0:13:49.240 I call and when? Would they be able to see 0:13:49.240 --> 0:13:54.440 how long my phone calls last with particular context? How 0:13:54.440 --> 0:13:57.360 would they use that information? Would they then start to 0:13:57.880 --> 0:14:00.960 make other connections? Like let's say that they know for 0:14:01.040 --> 0:14:04.120 a fact, because of the of my behavior on Facebook 0:14:04.440 --> 0:14:07.280 that I have a deep interest in football. Let's say, 0:14:08.160 --> 0:14:10.839 you know, let's say I've joined the fan page of 0:14:11.120 --> 0:14:13.559 a couple of football teams, maybe the fan page for 0:14:13.600 --> 0:14:18.000 the NFL itself, and that maybe even some fantasy football leagues. 0:14:18.280 --> 0:14:20.880 Things like that, and Facebook Facebook says, all right, well, 0:14:21.040 --> 0:14:25.040 clearly this guy's nuts about football. So he's a valuable 0:14:25.080 --> 0:14:27.960 asset to anyone who would advertise to such a market. 0:14:28.160 --> 0:14:31.120 Right now, let's say that you're making lots and lots 0:14:31.120 --> 0:14:34.680 of phone calls to your buddy Billy, And so Facebook's 0:14:34.720 --> 0:14:37.320 now got you know you're using a Facebook phone. Facebook 0:14:37.320 --> 0:14:39.800 looks and says, hey, look this, this guy who's really 0:14:39.800 --> 0:14:43.640 crazy about football is always calling his buddy Bill. You 0:14:43.680 --> 0:14:45.440 know what, I bet that they share a lot in 0:14:45.520 --> 0:14:48.240 common and there's a good chance that Bill is also 0:14:48.840 --> 0:14:52.200 a big football fans. So how about we sell Bill 0:14:52.920 --> 0:14:56.200 two advertisers as well, and maybe there maybe you have 0:14:56.240 --> 0:14:58.800 different tiers of people like you have the one tier 0:14:58.800 --> 0:15:00.680 where you're like, these are the people who are definitely 0:15:00.720 --> 0:15:04.840 interested in your product because they have demonstrated that on Facebook. 0:15:05.080 --> 0:15:07.840 Here's the next tier down, which are the context of 0:15:07.840 --> 0:15:11.280 those people who are the really valuable audience. These are 0:15:11.280 --> 0:15:14.640 people who are likely to also value your product, but 0:15:14.720 --> 0:15:17.920 we aren't assure. Yeah, like, I mean, that's just an example. 0:15:18.000 --> 0:15:19.720 I'm just pulling that out of the air. That could 0:15:19.720 --> 0:15:23.240 be miles away from what anyone's thinking, but it's the 0:15:23.240 --> 0:15:25.680 source of stuff we have to worry about. You know, 0:15:26.000 --> 0:15:28.680 how much are the information of ourselves are we giving away? 0:15:28.680 --> 0:15:31.120 And how much information about the people we know do 0:15:31.160 --> 0:15:34.400 we give away? Yeah? Yeah, well really that could be 0:15:34.440 --> 0:15:38.800 anyone though, I mean It's funny because the Facebook aspect 0:15:38.840 --> 0:15:42.000 of it, because there have been so many concerns with 0:15:42.840 --> 0:15:46.960 Facebook dot Com and privacy users privacy in the past. 0:15:47.120 --> 0:15:49.880 It really the same things could be asked of any 0:15:49.920 --> 0:15:56.040 carrier or provider of application, because there's there's really no 0:15:56.160 --> 0:15:59.720 telling what kind of information these applications are sending back. 0:15:59.720 --> 0:16:02.800 And I wouldn't I wouldn't uh say that we should 0:16:02.840 --> 0:16:05.800 all go out screaming in the streets and bash our 0:16:05.840 --> 0:16:10.040 smartphones into you know, lead and glass, inert pieces of 0:16:10.640 --> 0:16:14.200 uh trash simply because of this. I mean, I don't 0:16:14.240 --> 0:16:17.920 think it's that kind of thing, is uh rampant or 0:16:17.960 --> 0:16:19.920 anything like that. I just think, you know, it's funny 0:16:19.960 --> 0:16:22.920 that Facebook makes us suddenly go, hey, well, how's Facebook 0:16:22.960 --> 0:16:26.040 gonna you know, if we have a Facebook phone, you know, 0:16:26.080 --> 0:16:28.120 what will they do with our privacy? But I'm going, well, 0:16:28.160 --> 0:16:30.000 you know, why couldn't that be said of you know, 0:16:30.040 --> 0:16:33.800 any of the providers. They have the messages that travel 0:16:33.840 --> 0:16:37.320 across the network on encrypted um and uh you know, 0:16:37.360 --> 0:16:40.440 there there's information. I saw somebody recently say, um, you 0:16:40.480 --> 0:16:43.000 need to be careful when you turn in your old 0:16:43.120 --> 0:16:46.560 phone because you know, if you don't clear out your 0:16:46.560 --> 0:16:50.400 address book. What what information is stored in the phone's 0:16:50.520 --> 0:16:53.400 architecture itself, the memory inside the phone. If you do, 0:16:53.560 --> 0:16:55.120 do you actually clean it out or do you just 0:16:55.200 --> 0:16:57.600 turn it back in and hope they're going to to 0:16:58.000 --> 0:17:02.240 mulch it. Well, you make an ex in point because obviously, 0:17:03.160 --> 0:17:09.359 uh Android, Google Android, that the way Google Android works 0:17:09.440 --> 0:17:11.960 is you you give that information over to Google. You 0:17:12.040 --> 0:17:15.080 create a Google account if you don't have one already. 0:17:15.480 --> 0:17:18.920 Your contact list is stored in the cloud with Google. Yes, 0:17:19.400 --> 0:17:21.720 you know, all of the apps you buy are stored 0:17:21.720 --> 0:17:25.639 in the cloud with Google. So ultimately Google has that information. 0:17:26.119 --> 0:17:29.520 And there there have been people who have brought this 0:17:29.760 --> 0:17:33.040 to light saying this is this should be concern people 0:17:33.119 --> 0:17:35.600 at least on some level. You should at least ask 0:17:35.760 --> 0:17:39.120 questions like what are you doing with this data? Uh? 0:17:39.119 --> 0:17:42.600 And some people definitely hold Google under close scrutiny and 0:17:42.600 --> 0:17:47.040 they are very suspicious of the company and its goals. Right, 0:17:47.440 --> 0:17:51.320 But I don't think that even that being said, and 0:17:51.560 --> 0:17:54.480 despite how pervasive Google is and how a lot of 0:17:54.480 --> 0:17:56.480 people would say that at this point, we the Internet 0:17:56.560 --> 0:17:58.480 would not be the same without Google, Like if Google 0:17:58.480 --> 0:18:02.639 went away, the Internet would really suffer. Um, I still 0:18:02.720 --> 0:18:07.040 think that people hold Facebook to an even higher level 0:18:07.040 --> 0:18:11.159 of suspicion, mainly because of its fairly well publicized bouts 0:18:11.200 --> 0:18:16.720 with privacy issues, particularly the fact that in a Facebook 0:18:16.760 --> 0:18:20.320 profile you have to opt out of so many things 0:18:20.320 --> 0:18:23.480 in order to keep them private. You know. It's that 0:18:23.480 --> 0:18:27.960 that a lack of privacy is the standard at Facebook. 0:18:28.280 --> 0:18:30.720 It's only by going through and tweaking your settings that 0:18:30.840 --> 0:18:34.320 you are able to control your privacy. Otherwise you have 0:18:34.400 --> 0:18:39.080 a very public uh profile out there, including things like 0:18:39.119 --> 0:18:42.200 Facebook Places, which brought up a whole new rash of 0:18:42.760 --> 0:18:46.159 questions and concerns. And I would imagine that Facebook Places 0:18:46.200 --> 0:18:50.359 would be very heavily integrated into a Facebook phone, almost 0:18:50.359 --> 0:18:51.920 to the point where you could, you know, just ad 0:18:51.960 --> 0:18:54.520 a touch of an app, you would you would automatically 0:18:54.600 --> 0:18:58.359 update your Facebook profile to explain where you were like that. 0:18:58.359 --> 0:19:00.600 That would that makes perfect sense to me from a 0:19:01.000 --> 0:19:03.879 the perspective of Facebook. Well, yeah, I mean it's already 0:19:03.880 --> 0:19:07.760 been um, it's already been noted. Uh Rearan and McCarthy 0:19:07.760 --> 0:19:12.240 in their article. Uh we're pointing out that over the 0:19:12.320 --> 0:19:16.480 last little while here they've Facebook has updated its application 0:19:16.560 --> 0:19:19.600 to include all sorts of uh, you know, other bells 0:19:19.600 --> 0:19:23.960 and whistles like geotagging. Um. And it's the the application 0:19:24.000 --> 0:19:26.359 has become more a little bit more like an operating system, 0:19:26.400 --> 0:19:30.280 they had said. Plus they bought a company called hot Potato, 0:19:31.000 --> 0:19:34.720 which is uh sort of you know, it's the geolocation 0:19:34.880 --> 0:19:37.520 checking in uh feature that you see on on so 0:19:37.560 --> 0:19:40.560 many applications these days. Um. You know, so that that 0:19:40.600 --> 0:19:44.080 will give advertisers more information about where you are, so 0:19:44.119 --> 0:19:46.080 they could say, hey, well, if you're down here at 0:19:46.080 --> 0:19:48.280 this corner, you should come eat at my restaurant. You know, 0:19:48.359 --> 0:19:51.200 we're right down the block. Um. But I definitely think 0:19:51.200 --> 0:19:53.200 it's the kind of thing that is that's not kind 0:19:53.200 --> 0:19:55.919 of go away. Now that that Apple and Google have 0:19:56.359 --> 0:20:00.760 embraced it. UM, I did note and Electronista UM that 0:20:01.160 --> 0:20:04.879 Research in Motion, the parent company of BlackBerry, has just 0:20:05.040 --> 0:20:10.159 as of the this recording, just released the BlackBerry Advertising Service, 0:20:10.800 --> 0:20:14.200 which is they're going to split revenue um sixty forty. 0:20:14.240 --> 0:20:18.040 The advertisers get the revenue, but they're going to give 0:20:18.119 --> 0:20:24.159 more control over the the application of advertising to the 0:20:24.160 --> 0:20:27.719 app developers. UM. Not as much as you know, Apple 0:20:27.800 --> 0:20:31.000 has control over what can be done over the user experience. 0:20:31.040 --> 0:20:32.840 Course that that will be interesting to see what happens 0:20:32.840 --> 0:20:35.760 with that. But now that that BlackBerry, Google, and Apple 0:20:35.800 --> 0:20:41.040 are all into the mobile advertising market, companies such as 0:20:41.440 --> 0:20:46.080 Facebook and Amazon and other people who are large media 0:20:46.160 --> 0:20:50.720 companies um, online media companies are probably going to look 0:20:50.720 --> 0:20:53.240 to that as a source of of revenue and find 0:20:53.280 --> 0:20:56.119 ways to uh gain the presence in there and to 0:20:56.240 --> 0:20:58.880 bolster their things. And I know that people are probably saying, 0:20:58.920 --> 0:21:00.440 you know, Amazon, where are you talking kind of out 0:21:00.440 --> 0:21:03.199 but I've seen some signs that they are interested in 0:21:03.240 --> 0:21:07.160 developing other kinds of applications for mobile use, So it's 0:21:07.200 --> 0:21:08.800 not out of the question. I don't think they would 0:21:08.800 --> 0:21:10.200 be as far you know, I don't think there would 0:21:10.200 --> 0:21:13.760 be an Amazon phone, at least not before Facebook comes 0:21:13.760 --> 0:21:16.520 out with one. But I wouldn't imagine that it's out 0:21:16.520 --> 0:21:18.600 of the question. I mean, it's always looking for new 0:21:18.600 --> 0:21:21.560 and innovative ways to make money there. They're hosting service 0:21:21.760 --> 0:21:24.560 application service, UM. You know, it's not something that I 0:21:24.600 --> 0:21:27.879 wouldn't necessarily consider an Amazon core business, but it's something 0:21:27.880 --> 0:21:30.840 that they're in well, and they're already integrated with other 0:21:30.880 --> 0:21:34.040 operating systems pretty well. I mean the Android system in 0:21:34.080 --> 0:21:38.000 particular has Amazon integration where you can very quickly with 0:21:38.080 --> 0:21:41.280 like a one touch thing by Songs off of Amazon, 0:21:41.400 --> 0:21:43.959 for example, which is just that that's just a tiny 0:21:44.000 --> 0:21:47.800 baby step of integration. Uh. Well, they're definitely open minded 0:21:47.880 --> 0:21:51.680 enough to make kindle applications for Android and the iOS. 0:21:51.880 --> 0:21:54.560 So and that kind of leads into the discussion about 0:21:54.560 --> 0:21:59.320 why Facebook might be backing away from from these claims, 0:21:59.720 --> 0:22:02.840 why Facebook might be denying them. It's part of it 0:22:02.880 --> 0:22:07.520 is just that they're treading a very thin line here, right. 0:22:07.600 --> 0:22:10.159 They have to be really careful. They want to be 0:22:10.280 --> 0:22:12.840 able to From a business perspective, it makes sense that 0:22:12.880 --> 0:22:15.480 you want to be able to integrate your your services 0:22:15.600 --> 0:22:18.399 more tightly into the hardware so that you have you 0:22:18.400 --> 0:22:21.200 can gather as much information as possible and solid advertisers. 0:22:21.240 --> 0:22:23.240 Let's just boil it down to that. But on the 0:22:23.280 --> 0:22:28.280 other hand, you don't want to uh antagonize, right, Apple 0:22:28.720 --> 0:22:32.360 and Android and all of these other providers that are 0:22:32.359 --> 0:22:37.639 are you know, these other uh smartphone operating system developers. 0:22:37.680 --> 0:22:41.320 Let's say that that provide you a platform for your app. 0:22:41.880 --> 0:22:44.480 You don't want to alienate them. You don't want to 0:22:44.520 --> 0:22:47.160 give them a reason to no longer allow your app 0:22:47.280 --> 0:22:49.680 on their devices. Even though I seriously doubt that would 0:22:49.680 --> 0:22:53.080 ever happen because Facebook is so popular it would really 0:22:53.119 --> 0:22:55.480 surprise me. I mean, granted, I guess people could always 0:22:55.560 --> 0:22:59.560 navigate to the website via the mobile browser, but it 0:22:59.600 --> 0:23:01.520 would really surprised me to see those apps go away. 0:23:01.560 --> 0:23:05.040 But you don't want to antagonize them, because even if 0:23:05.040 --> 0:23:07.239 you come out with your own branded phone, you're going 0:23:07.240 --> 0:23:10.639 to be competing directly with them in the marketplace. And 0:23:10.680 --> 0:23:14.159 they're big boys. Yes, they Android and Apple have a 0:23:14.240 --> 0:23:18.800 huge head start. Apple in particular has a huge head start. Um. 0:23:18.840 --> 0:23:22.520 I mean, Symbion is still the worldwide dominant operating system 0:23:22.560 --> 0:23:25.440 for mobile phones, but in the United States, Apple and 0:23:25.440 --> 0:23:29.120 Android and to a lesser extent, rim are really they're 0:23:29.119 --> 0:23:32.439 the big players for the smartphone space anyway. And of 0:23:32.480 --> 0:23:36.040 course there's the Windows Mobile seven. You know that that's 0:23:36.880 --> 0:23:40.600 due out very soon and that may make a big impact. 0:23:40.760 --> 0:23:43.199 I've heard some positive things there. Yeah, I've seen the 0:23:43.280 --> 0:23:45.320 demos I've seen of it look very good. Whether or 0:23:45.320 --> 0:23:47.280 not it's going to be good enough to to really 0:23:47.520 --> 0:23:49.480 go toe to toe with the other big boys that will, 0:23:49.680 --> 0:23:53.280 I think that will mainly depend upon the hardware. Like really, 0:23:53.320 --> 0:23:55.600 that's the big advantage Apple has over everyone else is 0:23:55.640 --> 0:23:59.160