9 Comments

Summary:

Okay today is the day you go loco, drink too much tequila. But you don’t start a day early, or too soon. I think Motorola’s pricing strategy for OjO is just that – loco. (I had ranted about this earlier as well!) I mean what are […]

ojoOkay today is the day you go loco, drink too much tequila. But you don’t start a day early, or too soon. I think Motorola’s pricing strategy for OjO is just that – loco. (I had ranted about this earlier as well!) I mean what are they thinking – we will pay $800 for a video phone, which is good looking only in a Star Trek kind of a way. “Even if you’re willing to hand over $800 for one (or, more realistically, $1,600 for two, since you’re going to need someone to call), you may have to provide your own access,” writes Engadget. How about taking a cue from Packet 8, which has been cutting prices desperately to push its video phones, and consumers are still saying, whatever! Do we need another digital clunker in the house, especially when 3G wireless will make video calling easier on cell phones. I know for some odd reason Motorola thinks it can repeat RAZR’s success, but OjO will never be RAZR. It will cost millions in marketing and promotion, or what I call a futile attempt and waste of shareholder equity.

By Om Malik

You're subscribed! If you like, you can update your settings

Related stories

  1. For me the only noteworthy aspect is that it uses H.264 video codec. But the business model is counter to the technology. I am not complaining about the base price. This might be temporary and cynic in me says that they have purposefully priced it high so has to create an aura of exclusivity and then discount it deeply. But they have a monthly fee of $15. For what? Directory service. But D-Link offers this serice for free when one buys their low end phone that costs a couple of hundred dollors. Even Packet 8 has cancelled the added monthly charge, even though they ask you to sign up for VoIP service.

    Share
  2. I think you are looking at this in a very narrow fashion. Price to most new products were never problem.Example.(IPOD comes out with basically an MP3 priced 3 times the amount of competitors and outsales all of them combined).It is quality and how you market it.This is the first videophone that i truly feel that gives you face to face contact.There is no price for building memories or interacting with loved ones.Here is a quick list of products still priced high.Camcorders,cameras,cell phones,blackberries,ipod’s,and sattelite radio.Just because you wont buy it doesnt mean many people like me wont either.This is the first real technology to bring something new and refreshing.As for the $15 fee that will probably drop or spin off to cable operator.So dont go crazy on price you will seem foolish later.

    Share
  3. not sure how you can that this is something new … ojo is not the first video phone and it is too pricey. if they want something like this to work, it needs to be priced just right and has to be easy to use. not sure i buy your arguments. why not wait and see how many actually pony up for this super expensive phone.

    Share
  4. I have used if people know how to use a phone or keybad its basically the same.What videophone have you used i have used all that have come to market nothing even comes close.The fact that people have been trying to put something to market for many years shows you the belief in the whole concept.Mercedes outsales Cadillac and Lincoln.They both drive,both cars.The quality is what people will pay for.I expect this phone to cost 500-600 in about 3 months.That might be too much for you.Because you must have a videophone thats better somewhere or you dont care to see certain people that badly.I have a child in college and to me its priceless.Over 5 million kids go away to school every year, I am sure their parents see my view.Price is what you pay for.Regarding cells,now that is ridiculous.Should I put the phone 3 feet from my face so I can see the person,that would be pretty comfortable too.How about they will make the screen 1 inch so i can see 1 cheek or some nastrils.I have used Packet8,vialsta,and other generics.You get what you pay for.That is why the industry has not accpeted it.Read betwwen the lines the price doesnt sell the phone its the quality.

    Share
  5. sorry for spelling, was in a rush.did not read thru it till now.

    Share
  6. “This is the first videophone that i truly feel that gives you face to face contact.”

    Then you haven’t seen the Packet8 DV326, or it’s predecessor, the 325.

    “Here is a quick list of products still priced high.Camcorders,cameras,cell phones,blackberries,ipod’s,and sattelite radio.”

    I just paid $900 for a digital video camera that cost me $2000 four years ago (the original was stolen).

    Digital cameras have dropped in price by about 60% in the last 7-8 years.

    Most cell phones are free with the service.

    P8 has been trying to sell their phones for $250 apiece for several years now, to no avail. You honestly think people are going to pay $800 apiece for an Ojo, especially with the P8 phone now priced at $99?

    “This is the first real technology to bring something new and refreshing.”

    Wrong. The P8 DV325 IP videophone was first by several years.

    “So dont go crazy on price you will seem foolish later. ”

    You seem foolish now.

    Share
  7. Leon:

    I stand by my comment about the monthly fee. What is the service provided on an ongoing basis? It should drop to zero on day one. I wonder how will people react if they have to pay a monthly charge to use a camcorder for which they have paid full money.

    Share
  8. Don’t know why some are so upset about eachother over a product that is geared at bringing people closer. Anyway, I’m Canadian and my wife is Brazilian… we have a 17 month old daughter. Her grandma, aunts and cousins from my wife’s side are obviously in Brazil and they cam almost everyday. My wife moved here of her own free will but in return I promised that there would be no limit on travel or phone calls to Brazil. We bought her mom a computer and cam already, plus she has high speed… The quality of our current logitech cams is better than nothing but the thought of a near no delay in video and audio for them to use is appealing and the least I can do. The simplicity to use the Ojo is also appealing… no clicking here and there and upgrades and viruses as with computers… All good news for a 70 year old, in our case. And no more phone bills to Brazil… Ojo has my attention. The price is indeed high… but I am also a believer that I get what I pay for. It did win at least an award, meaning that it has an edge over competition. Years ago when the Internet was at speeds so slow that it sometimes took a minute for a page to appear… so frustrating that I unsuscribed. Now with high speed it is fun and even more convenient than looking for an adress in the phone book. Ever watched CNN embedded reporters with cams overseas… choppy and slow motion… almost not worth looking at, certainly not for too long. Then the blessing of TV broadcast appears. Maybe it will be the same with Ojo. Maybe not. But wouldn’t it be awesome if it was.

    Share
  9. People who view the OJO as a Phone or a product are thinking very small here. OJO can’t be viewed as a product but must be viewed as a new Revolution in communications. OJO will become an new industry in itself. My fellow OJO folks the OJO revolution is starting. $$$$$$$$$$

    Share

Comments have been disabled for this post