Hon Hai Precision Industry Co (鴻海精密) grew into the world’s largest electronics manufacturer-for-hire by churning out best-selling products such as iPhones, Kindles and PlayStations. Now, it is deploying that power to bring cryptocurrencies to the masses.
FIH Mobile Ltd (富智康), a subsidiary of Hon Hai, also known as Foxconn Technology Group (富士康) outside Taiwan, has agreed to help develop and produce a blockchain phone from Sirin Labs, the start-up said.
The new device, called the Finney, is designed to help owners securely store and use digital coins such as bitcoin, as well as related services.
While millions of people have bought bitcoins, relatively few bother to use them for daily transactions. To prevent theft, owners have to keep the coins on special memory sticks until needed, then remember user names and passwords that can be dozens of characters long.
With the user experience as it is, “the mass market would never get it,” Sirin chief executive officer Moshe Hogeg said. “There’s no chance my mom can figure out how to use bitcoin, and my mom is smart.”
Sirin raised US$158 million in December last year for the project in an initial coin offering, in addition to US$70 million raised previously.
The phone is slated to ship in October. Sirin plans to sell the device through eight new stores located in places with the most active crypto communities, such as Vietnam and Turkey.
Hogeg said he hopes it will eventually be sold through mobile carriers as well.
So far, more than 25,000 units have been pre-ordered, the company said.
Sirin aims to ship between 100,000 and a few million units this year.
The device seeks to integrate all kinds of tokens. It aims to let owners shop on crypto-friendly sites like Overstock.com and Expedia, converting cash into specialized tokens if needed.
Users could even activate their phone’s Wi-Fi while commuting and get paid in tokens by fellow bus riders looking for access to a wireless network.
Sirin said the Finney would handle all coin-related services in a part of the phone that is activated with a physical switch. Instead of keying in a complex address and private key, the company said users might eventually verify their identities with an iris scan, a fingerprint and a simple password.
Switzerland-based Sirin hopes to license its technology to other phone manufacturers.
Such software deals could push down the Finney’s price from US$1,000 to as little as US$200.
“I think I can take it to a mass market phone in a world where innovation in phones is saturated, it’s dead,” Hogeg said.
He said he expects deals with two smaller manufacturers, and is in conversations with a top supplier.
Sirin is in talks with Huawei Technologies Co Ltd (華為), Bloomberg reported.
Whether Sirin can turn this product into a blockbuster remains to be seen. Some of Hogeg’s previous ventures did not go far. What is more, most people do not yet use cryptocurrency or blockchain. Only 8 percent of Americans have invested in digital tokens, according to Finder.com.
The phone market is also a difficult one, but Hogeg is undaunted.
“I want to do something that’s better than the current user experience,” he said. “In the end when you look at the Chinese wall, it started with one guy taking one small brick and putting it into place, and then another one and then another one. We can do it step by step.”
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