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Chronicles

The story behind the story

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The Samsung i300 hits the shops

We told you the first mobile with hard drive was imminent and now it's here - the Samsung i300 wth 3GB hard drive is available on the O2 network, combining a phone, digital camera, music player and mobile communication in one rather neat little package.

Tech Digest Shiny Media

Context & Ripple Effects

Tech Digest flagged the i300's imminent arrival before this retail debut, so the story closes a loop the outlet itself opened: Samsung's 3GB hard-drive phone is now shipping through O2 rather than sitting at announcement stage. It lands as one data point in Samsung's broader 2005 device push, which already includes a CableCARD-enabled TV and, reportedly, more two-way cable products in the works that depend on enabling hardware not yet available.

First-order effects

  • O2 gains a differentiated flagship handset at retail, since the i300 is the first mobile phone with an onboard hard drive and bundles camera, music player, and voice in one device.
  • Dedicated MP3 player and compact camera makers now face a single gadget that undercuts their reason for existing in a coat pocket, sold through a carrier contract rather than consumer electronics shelves.

Second-order effects

  • Samsung's rival handset vendors are pushed toward matching onboard storage, because a 3GB drive in a phone resets what buyers expect a handset to hold.
  • Carriers such as O2 get a new lever beyond tariffs — exclusive or early access to storage-rich hardware becomes part of network competition.

Third-order effects

  • If hard-drive and then flash capacities keep scaling into phones, the standalone music player and point-and-shoot camera categories erode into features of the handset, with storage cost curves deciding which survive as separate products.

The trend: Mobile handsets are absorbing the functions of dedicated consumer electronics — cameras, music players — as onboard storage makes the convergence phone practical.