Reports indicate that the parent company of Snapchat is diversifying away from being just an apps and software business and is intending to launch a smartphone. According to the rumors, Snap Inc’s strategy is to build the phone around its app.
Threat from Facebook
One of the reasons prompting the decision by Snap Inc is to simplify to diversify its revenues since it is currently over-reliant on advertising revenues. Another reason is the threat posed by Facebook. In the recent past, the social media giant has cloned most of the features that helped make Snapchat unique. Also, the increasing popularity of Android against other smartphone operating systems and thus making it an opportune time to join the Android bandwagon with its own phone.
From the imagined designs of the rumored Snapchat phone available, all indications are that the device will act as the app’s extension. As such, the smartphone will boast deep integration with the app. One of the phone’s features that lend credence to this fact is the 360-degrees camera. This is likely to be one of the features that allow the Snapchat smartphone to stand out from the crowded market. Snapchat’s ghost logo features prominently on the phone as the home button is made in its image and likeness.
Learning from the failure of others
The decision by Snap Inc to develop an Android-based smartphone is not the first by a company of its kind. Facebook has tried this before with a phone that was made in conjunction with Huawei. The smartphone did not, however, become a success and was quickly dropped.
To ensure that the Snapchat smartphone succeeds where others have failed, the disappearing message firm is currently hiring talent with a background in the industry. This includes engineers and designers whose specialty is developing mobile phone hardware. Some of the hires have previously worked at Nokia, Verizon, HTC, Google, Apple, and Motorolla.
With an upcoming initial public offer that is slated for this month, it is expected that part of the proceeds will be used to form a sizeable war chest. Snap Inc is targeting to raise $3 billion this month and $27 billion in the next ten years.