Word: handset
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Kajeet isn't first to market. Firefly Mobile has signed up about 200,000 preteen customers over the past two years, touting its parental controls and simple design: the five-button Firefly handset lacks even a number pad. Disney launched its mobile service last year, featuring a child-tracking function that works only on the Disney-branded handsets. Kajeet, on the other hand, thinks kids can handle a grownup phone...
Rachel's first breathless call was to her grandparents. "Guess what, I have my own cell phone," exclaimed the cutting-edge fourth-grader through her shiny, tricked-out handset. The perplexed, interstate scowls at other end of the line were easy to envision. "Why do you need that?" retorted her disapproving elders virtually in unison. My nine-year-old didn't have an immediate answer, but instinctively and ineffably, she knew she had arrived...
...Kajeet isn't first to market. Firefly Mobile over the past two years has signed up about 200,000 customers under age 12, touting its parental controls and simple design: the five-button handset lacks even a number pad. Though garnering low marks for style, the clunky Firefly has surely helped some divorced or single working parents who spend a disproportionate amount of time apart from their children. Disney similarly rejected coolness as a priority when it launched its mobile service last spring. "They don't even know who their customer is - the parent or the child," said Entner, noting...
...with actual phone calls. The device is really a next-generation multi-media networking platform in a youthful and slightly edgy package. Or in other words, an alluring toy. A few weeks into my daughter's testing phase, I spotted her roaming around the house delightedly barking into the handset: "Code Red Alert. Code Red Alert." Under closer scrutiny, it became clear the phone wasn't even switched on. When I asked what she was doing she breezily replied: "I'm just playing. None of my friends have cell phones so I don't actually have anyone to call...
...cell-phone turf is already held by entrenched armies of phonemakers and service providers. They may not be as hip or innovative as Apple, but they will shred one another for nickels, and there are a lot of nickels on the ground. One point of market share in the handset business is worth $1.4 billion. Motorola, having sold more than 50 million Razrs with not enough to show for it, will probably be reverse engineering the iPhone before it hits the stores. "We already have cell phones and smart phones, so the marketplace is already very competitive," says industry analyst...