Facebook struggling to break into hardware #makerbusiness

 

Facebook is a massive company with the a massive user base — early this year it was estimated that there were over 2 billion monthly users. The network effect of this is seemingly impossible to surmount, but they’ve found many ways to stumble. There are high profile privacy concerns following and surrounding the Cambridge Analytica scandal, and the furor following the 2016 election, but breaking into hardware is proving to be another area where they can’t seem to catch a break.

In 2012 Facebook purchased Oculus for over $2 billion, but the VR devices have failed to achieve widespread adoption. A year later, there was the Facebook phone, but it was discontinued shortly after it was launched. Their latest attempt–and flop–was Portal.

Portal sales have been so disappointing that Facebook has slashed prices multiple times. According to IDC, the company has shipped just over 54,000 Portal devices since its launch (The Information first cited this data). Michael Levin of Consumer Intelligence Research Partners described Portal’s market share and consumer awareness as “immaterial.”

At its core, Portal is a video-chat device. The thing is, most people already have one of these — it’s called a smartphone. Granted, there are a few perks to Portal, like its swiveling base that follows users as they move through the room, but it’s not doing a lot to differentiate itself from even its more direct competitors, such as Amazon’s Echo Show or Googles Nest Hub.  There is potential to be sure, especially integrating it with Oculus, but as it stands, there isn’t much to it.

[This] highlights Facebook’s central quandary as it seeks to diversify beyond mobile ads, which account for 93% of revenue, and expand into the costly business of developing, manufacturing and selling consumer devices. Coding is Facebook’s DNA, but the company’s hacker culture clashes with the realities of hardware development, which demands longer time horizons and relationships with a wide swath of manufacturers and resellers, all issues well beyond Facebook’s core.

Facebook hasn’t been able to lean into its existing network and massive user base to facilitate a hardware breakout. Hardware is, well, hard. In some ways Facebook has been bold, like acquiring Oculus, but it hasn’t really landed on a product with general interest and democratized accessibility. There may be a bright hardware future for Facebook on the horizon, but for now there isn’t much to see.

Read the story over at CNBC. It gives some insight into their struggles, and the obstacles they’ll need to overcome.


Adafruit publishes a wide range of writing and video content, including interviews and reporting on the maker market and the wider technology world. Our standards page is intended as a guide to best practices that Adafruit uses, as well as an outline of the ethical standards Adafruit aspires to. While Adafruit is not an independent journalistic institution, Adafruit strives to be a fair, informative, and positive voice within the community – check it out here: adafruit.com/editorialstandards

Join Adafruit on Mastodon

Adafruit is on Mastodon, join in! adafruit.com/mastodon

Stop breadboarding and soldering – start making immediately! Adafruit’s Circuit Playground is jam-packed with LEDs, sensors, buttons, alligator clip pads and more. Build projects with Circuit Playground in a few minutes with the drag-and-drop MakeCode programming site, learn computer science using the CS Discoveries class on code.org, jump into CircuitPython to learn Python and hardware together, TinyGO, or even use the Arduino IDE. Circuit Playground Express is the newest and best Circuit Playground board, with support for CircuitPython, MakeCode, and Arduino. It has a powerful processor, 10 NeoPixels, mini speaker, InfraRed receive and transmit, two buttons, a switch, 14 alligator clip pads, and lots of sensors: capacitive touch, IR proximity, temperature, light, motion and sound. A whole wide world of electronics and coding is waiting for you, and it fits in the palm of your hand.

Have an amazing project to share? The Electronics Show and Tell is every Wednesday at 7pm ET! To join, head over to YouTube and check out the show’s live chat – we’ll post the link there.

Join us every Wednesday night at 8pm ET for Ask an Engineer!

Join over 36,000+ makers on Adafruit’s Discord channels and be part of the community! http://adafru.it/discord

CircuitPython – The easiest way to program microcontrollers – CircuitPython.org


Maker Business — “Packaging” chips in the US

Wearables — Enclosures help fight body humidity in costumes

Electronics — Transformers: More than meets the eye!

Python for Microcontrollers — Python on Microcontrollers Newsletter: Silicon Labs introduces CircuitPython support, and more! #CircuitPython #Python #micropython @ThePSF @Raspberry_Pi

Adafruit IoT Monthly — Guardian Robot, Weather-wise Umbrella Stand, and more!

Microsoft MakeCode — MakeCode Thank You!

EYE on NPI — Maxim’s Himalaya uSLIC Step-Down Power Module #EyeOnNPI @maximintegrated @digikey

New Products – Adafruit Industries – Makers, hackers, artists, designers and engineers! — #NewProds 7/19/23 Feat. Adafruit Matrix Portal S3 CircuitPython Powered Internet Display!

Get the only spam-free daily newsletter about wearables, running a "maker business", electronic tips and more! Subscribe at AdafruitDaily.com !



No Comments

No comments yet.

Sorry, the comment form is closed at this time.