In a vertical integration of services from parent company Verizon, Yahoo’s launch of its first smartphone aims to increase its user base for budget-minded customers. The Yahoo smartphone will allow a wider community of customers to sign up for Yahoo Mobile, creating Verizon subscription revenue while also extending the scope of Verizon Media, the content and advertising sales group of the business that supervises Yahoo.
The greater audience for mobile marketers may drive them to devote more of their media dollars, like Yahoo Sports and Yahoo Finance, to Yahoo’s various content channels.
Although the first Yahoo smartphone operates on Yahoo Mobile, customers who prefer various smartphone brands such as Apple’s newly released iPhone 12 and 12 Pro also have access to the carrier. Next month, as Apple begins shipping more of its enlarged range, the iPhone Pro Max 12 and 12 Mini will be available. Verizon’s 5 G network later this year, as per its statement, will be included with all Yahoo Mobile plans and will be available on compatible devices.
After purchasing it for $4.8 billion in 2016, the launch of the Yahoo smartphone comes as Verizon finds more ways to monetize the web services brand. The deal occurred when rivals such as AT&T, along with TV channels and film studios, were moving into new media with acquisitions of cable and satellite TV distributors.
Verizon merged the business with AOL a year after purchasing Yahoo and renamed it Oath to distribute content and sell ads. Oath was renamed Verizon Media last year by Verizon, whose brands include Yahoo, AOL, TechCrunch and Engadget.
The smartphone from Yahoo has a 5.45-inch 720p HD display, 2 gigabytes of RAM and 32 gigabytes of memory, a rear fingerprint sensor and an automatic face recognition function to unlock it. The phone works with the 4 G LTE service of Yahoo Mobile, which has an unrestricted talk, text and data plan with no annual contract for $40 a month.
The purple-coloured phone runs with Android 10 and arrives preinstalled with the app family of Yahoo, including email, news, finance, sports and weather. Yahoo also offers access to its newly introduced “watch together” service that allows individuals to view video programming with friends and family while enjoying a free video chat.