//Privacy protection could hurt Facebook portal sales
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Privacy protection could hurt Facebook portal sales

 

 

When Facebook's smart presentation was launched last year, it sparked mixed reviews. However, a significant number of them also took part in the controversies over privacy and personal data that have recently surrounded Facebook. An article by The Verge proposes a representative example:

It is not common for a new gadget to be announced and I do not want to immediately put it on hand. I am an extreme early adopter, both professionally and inclinely. But when the new Facebook portal and the Plus portal were announced a month ago, my answer was a "no thank you" firm. And I'm not alone: ​​after a year of scandals on data privacy, the first reactions of many people to the portal, a smart display A device with a microphone and a camera always at the Listening has landed between hesitation and repulsion.

Portal is currently available in two versions of intelligent display

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Late on the market. Facebook was late in the market with the smart display device (powered by Alexa) and this fact has undoubtedly hurt its position. But there is now data suggesting that people might stay away for privacy reasons.

Facebook's profit for the first quarter of 2019 this week exceeded Wall Street's expectations. The company recorded advertising revenues of nearly $ 15 billion, up 26% from the previous year. To the surprise of some, the privacy scandals that have been the subject of numerous reports have had no negative impact on Facebook's advertisers' behavior and revenues. But Portal may have a different story, and there is evidence that these privacy controversies weigh heavily on Facebook's relationship with consumers.

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Material income down for a year. Facebook does not release any material revenues; it resides in Payments and other charges. In the first quarter, revenues were $ 165 million, down 4% from last year (virtual reality equipment is also part of this revenue). And although we have no way of knowing specifically about Portal's sales, the evidence suggests that they are not progressing very well.

Beyond declining Q1 revenues, the company recently lowered the price from 1945. Both portal models per $ 100. And in several surveys, consumers have indicated that privacy protection is a growing concern for smart speakers and smart screens.

A 2019 survey of PC Magazine involving 2,000 US adults revealed that privacy lists concerns about smart home products. Privacy was also at the center of a survey conducted by Common Sense-Survey Monkey on parents' concerns about their children's use of virtual assistants and speakers intelligent. A third survey of IBD / TIPP revealed that more than 70% of respondents worried about the privacy of smart speakers. And there are more such investigations.

Why we should care The market for smart speakers and the screen is very similar to the smartphone market, with two dominant companies under control: Amazon and Google. Apple is also in the running with its HomePod; and, from that moment, Facebook too.

If the social media company wants to compete in the smart home market / smart speakers, it will have to do a number of things: create a really great device, aggressive price and go to- beyond to offer protection of privacy. Simple assurances are not enough.

About the Author

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Greg Sterling is a collaborative editor at Search Engine Land. He writes a personal blog, Screenwerk on the links between digital media and consumer behavior in the real world. He is also Vice President of Strategy and Knowledge for the Local Search Association. Follow him on Twitter or find him on Google+ .