Following the unveiling of its new social handsets, INQ boss Frank Meehan tells ME why rival vendors are missing a trick.
The INQ Chat 3G and INQ Mini 3G add Twitter to the Facebook, Skype and instant messaging functionality of their predecessor, the INQ1.
"We've caught the established vendors on the hop a bit," says Meehan.
"With the exception of Nokia, they haven't really focused on 3G very hard except in their high-end handsets. Operators are desperately keen to get data across the base rather than just the top end of the market, but there's a dearth of good 3G devices out there at good price levels."
Meehan says INQ is closing operator deals for both new handsets at the moment, with plans to announce them in the coming months.
ALL OF A TWITTER
The INQ1 was marketed as 'The Facebook Phone' by operators, but Twitter is the new social feature this time round. Users of the INQ Chat 3G will see their friends' tweets appear on the homescreen of the device.
However, Meehan says it's about more than social networking. "It's not just about Twitter as a mini-blog, it's becoming the new RSS really," he says.
"RSS was kinda clunky and nobody really used it. But if you look at major media organisations now, they all shoot tweets out when a story breaks. We're harnessing that."
However, he says that the Chat 3G won't be marketed as 'The Twitter Phone' this time round. "It's much more about 'The Social Phone' this time, as we've gone harder after a broader range of things, with Facebook, Twitter and email as part of it."
One of the successful aspects of the INQ1 was how popular its Facebook feature was. 65% of users said they used Facebook regularly as a result. According to Meehan, this is the big appeal for operators, as it gives people a reason to hang onto their data contracts.
"Operators all have the same problem with existing handsets, which is the rebound effect," he says.
"If you manage to sell data with a handset, the likelihood of it bouncing back to you two months later is really high, unless it's an iPhone or BlackBerry. It's not exciting enough for the customers, so they want it taken off their bills."
DOUBLETWIST IN THE TALE
Another intriguing feature with INQ's new handsets is their ability to sync music with iTunes, using technology from software firm DoubleTwist.
Meehan says the feature is aimed squarely at the millions of people who own iPods, but can't afford to buy an iPhone yet. "There's a big need for them to have something they can use as one device, and this helps without them having to compromise," he says.
Isn't it a danger, though? Palm's Pre smartphone also syncs with iTunes, and has led to a spat between Palm and Apple, with the latter disabling the feature in the latest iTunes update.
"We're not trying to do what Palm did, which is try to break iTunes itself," says Meehan.
"That's just leading you up the path to Apple stopping you. But DoubleTwist has been out for a little while, and it's validated. I don't think Apple is going to get terribly bothered about it, but what they don't like is a non-Apple product appearing in iTunes."
In fact, he thinks Palm's strategy has been counter-productive. "They've caused themselves a lot of problems by hanging their hat on this so heavily: people aren't sure when they buy a Pre whether it will sync or not."
FUTURE PLANS
So what next for INQ? Meehan says the company is already in the initial development stages for its next handsets, due out in 2010. The obvious assumption is to look for other social media services that the firm could integrate - YouTube perhaps.
However, it seems the focus may be in another direction. "I want to keep going down in the price point," says Meehan.
"In Asia and Middle East and the Americas, the vast majority of handsets are still $100 and under. If you can do that with a great social experience, it's a big opportunity."
While INQ is looking at how to integrate technology like touchscreens in its future phones, Meehan is firm about the company's focus on bringing social features to the affordable end of the handset market, rather than stretching up into smartphones.
"The high end is quite a small market and dominated by Apple," he says. "You're left with the pickings, which is basically people who don't want an iPhone. If you really want to make it in the handset market, you've got to have volume and look to the mass-market."
He remains confident that now is a good time for a new player like INQ. "There's a big open gap for new brands to come in with a very focused strategy," he says.
"Apple has made everything else look very dull, and customers know that, even if they can't afford an iPhone. It's the perfect switch. RIM came out of nowhere ten years ago and built a strong steady business on a very focused strategy. That's what we want to do."
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