Can a Portable Skype Device Succeed in the Market?
One of the advantages of working for the GigaOM Network is the ability to contribute some in-depth articles for the subscription site, GigaOM Pro. These articles give me a chance to really delve into an idea and flesh it out into a full-fledged product idea. One such idea concerns a device to compete with the iPod Touch from Apple.
The iPod Touch is a great audio player, but so much more. The inclusion of the iPhone OS on the Touch turns the iPod into a phone without the phone bits. That means good web surfing, email and the like, all due to the inclusion of Wi-Fi.
A competing device would have to do all the things the iPod Touch can do, and just as well, but there is one area that could be exploited to make it better — VoIP. Sure the iPod Touch can do VoIP, but it requires additional accessories and Apple doesn’t promote the function. This lack of promotion for VoIP is likely due to Apple’s partnerships with phone carriers on the iPhone side. Carrier partners wouldn’t like it if Apple started pushing the iPod Touch, no carrier contract required, for making free (or cheap) VoIP calls.
If a company would make a gadget that focuses on VoIP, it could be promoted heavily as a “Skype in your pocket” device. Skype (or the equivalent) could be included on the device along with the components to exploit it. A device like this, coupled with good media playing capability, could give the iPod Touch a run for its money, I believe.
These thoughts come to you from a longer article I wrote for our subscription research site, GigaOM Pro. Check out that article for my full analysis of what such a competing device must have, and who is in a position to make one. Please feel free to comment on this idea here; I am interested in your thoughts.
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I have been waiting for a device like this for a long time. The only thing I’ve found that comes close to this great idea is the Sony Mylo. I own a first generation Mylo and have tested the second generation Mylo, the only downside to these devices is that the applications and content doesn’t exist yet, but it is possible that it can be developed. Now with the introduction of such things as MiFI these devices can be a cheap smart phone replacement. I know that Peek is trying to develop a linux OS for their device, and possibly integrate Skype into the OS.
But the downside for Peek is that theres not a wide enough development network similar to Sony but without the large enterprise support. I believe that eventually if the Mylo starts getting more applications and a good development network it can surely give apple a fair fight.
Mostly the video portion of Skype – or in other words “full” skype experience.
I would say a Viliv S5 with the X70 camera.
BTW, there are Skype phones out there … so on that I really lost you James.
Tal
Well I think that most people would like the Full skype experience and for this the Nokia N810 comes in handy, but is way too pricey to compete with anything on the market. The Viliv S5 is a good option, but is a little too large for portability. And the Skype phones out there are very simple in relation to the iPod touch or even the Mylo. And all these Skype phones usually have Skype and nothing else loaded onto it and they barely work. I would love to see a well priced iPod touch or similar device with 3G on it. That would be first on my holiday list.
I am by no means a voice person and often am at a place with Wifi coverage. But I don’t think I would even consider dropping my cellphone plan for a pure VOIP device. Just too many places where there’s no WiFi: E.g., while driving down the freeway I have a flat tire. Do I hike to the nearest starbucks to call AAA on my VOIP “phone”? You could argue I can carry a cheap prepaid phone for those cases. But who wants a second device?
Besides that, I am surprised to read this story here, a site that every day talks about how important 3G coverage is. Would you seriously consider giving up your 3G for just WiFi? (well, I did drop my EVDO plan when I got the iPhone, since I am often enough in WiFi coverage for laptop use that it didn’t make sense to spend 600+ bucks a year for “just in case” situations). But you?
Don’t misunderstand my intentions with this device. This did not state nor imply that such a device would replace a cell phone. It is a competitor to the iPod Touch which can also do Skype. That’s a far cry from a cell phone. As prevalent as Wi-Fi is getting it’s still not everywhere.
Why would the carriers then be concerned?
Carriers do not like VoIP, cheap (non-carrier) phone calls, lack of roaming, etc.
Have you guys never seen the Nokia N800/N810 devices? These are great little Skype terminals. I’ve had the N800 for years. Nice Web browser, reasonable e-mail, camera, good battery life. They are Linux devices so they can do a lot of different things, such as ssh terminal sessions and scp file transfers. The 800 is touchscreen. The 810 has a slide-out keyboard.
Just a point of note. From an audio quality point of view, the iPod Touch is an OK audio player. I would not use the term “great” to describe its sound, especially in comparison with many other portable music players, Apple or otherwise.
–Ken
Agreed. The iPod is the major player to compete with, though.
I don’t see how a Skype device that could only support WiFi could ever compete against current cell phones. Voice support is ubiquitous, and having a service what can only be supported in small hot spots just wouldn’t be something I would bank on. Even if the cost is significantly lower, voice minutes on cell networks have become cheaper, so sacrificing the nobility for that small price drop…. I just can’t see it.
A Skype device that works over the cell network is something else. It could succeed, but then it’s not only about the device supporting VoIP, it’s mostly about the network being able to support the required QoS for a VoIP call. The mechanisms to support that exist with HSPA, but not many manufacturers built it (no demand) and certainly not many operators have deployed it. Without deploying those QoS handling mechanisms, the quality of a VoIP call will always remain sub-par to downright poor.
Interesting idea… but in the end it doesn’t make sense. These days, devices are moving more towards 24/7 connectivity transparently, no fiddling with wifi on/off finding hotspots etc.
I’m sure there are some people who would like a full-blown Voip device but specialized devices that require expressly finding a speedy enough connection just don’t strike me as reliable enough… and nothing makes you as prone to give something up than not being able to rely on it, all the time, every time.
i dont think a wifi only device would suceed, anyway weve been enjoying unlimited free skype on the 3uk network for several months now, personally ive been enjoying the experience on the touch diamond 2 and my vaiop, just about anywhere! 3 could really nail it in the uk with there free skype forever plan.
I hate to spoil the surprise, but all the stuff you need to do this is already out and handy. What you do is combine a few technologies together and you can replace your pricey cell phone plan with a (equally pricey) data plan- use it to run skype 24/7 with its (really cheap) subscription, and you’ve got yourself 3G bluetooth tethered to your laptop, VoIP on your PDA, and wireless Video Chat on it too. These three elements are:
-Touch screen PDA w/ front facing camera (ie-HTCTouchPro)
-USB data plan
-Linux PDA OS (ie- Google Android)
Well that’s my plan at least. I haven’t tried it yet, but it should work…