Solana may launch a second-generation smartphone, which will be cheaper than the first-generation Saga.

Last year, Solana's mobile division released the blockchain smartphone Saga, which experienced fluctuations in sales but is now rumored to be developing a second-generation phone that may be priced even cheaper than the original Saga after a period of ups and downs. Source

Solana Saga Phone Aims Not for Market Share

Saga is Just an Experimental Project

According to Solana co-founder Anatoly Yakovenko in 2022, the launch of the Saga phone is not intended to sell 10 million phones and compete in the phone market, but rather due to its low cost feasibility for experimentation and to explore the development of a more diverse Web3 ecosystem.

Solana Founder: Saga Phone Project is Cheap Enough for Experimentation, Not Aiming to Sell 10 Million Units

The goal of the Saga phone is to target a niche audience interested in heavy encryption, providing an alternative Web3 user experience. It includes open-source Android software, built-in crypto wallets, mobile key security storage protocols, a dApp Store, and other unique features.

Therefore, the Saga phone, as an experimental project, is only producing 20,000 units priced at $1,000.

How did the Saga Phone Experiment Turn Out?

The Saga phone officially went on sale in May 2023, but due to lower-than-expected sales, the price was reduced to $599 in August, yet it still did not meet sales targets.

Fire Sale! Solana Phone Saga Discounted by 40%, Originally $1,000, Now for $599

Subsequently, projects began airdropping tokens to owners of the phone, with the token value exceeding the Saga phone's sale price, leading to a complete sell-out within a week.

Solana Phone Sales Skyrocket as Airdrop Tool? Free $BONK Tokens Worth More Than Phone Price

However, as Yakovenko mentioned, the shortcomings of the Saga phone became apparent. Since most applications and security certifications are linked to the iPhone, even with the Saga phone, the co-founder himself still uses an iPhone for work purposes.

Saga Phone to Continue to the Next Experimental Phase

A project that was once on the verge of being abandoned has been revived, and there is speculation about whether there will be further announcements. According to Coindesk sourcesstated, the Solana Mobile team is considering a new project, planning to launch a second crypto smartphone.

With only 20,000 units of the first-generation phone, even if it eventually sells out successfully, it is unlikely to bring greater success to the Solana ecosystem, hence the plan for a second-generation phone.

Lower Price for the Second Generation Phone

The upcoming phone will have the same basic features as Saga, including a built-in crypto wallet, a specific Android operating system, and a dApp Store.

However, this phone will have different hardware specifications, and its price will be lower to avoid a repeat of last year's $1,000 unsold situation. The team believes that pricing is also a critical factor influencing users to purchase blockchain phones.

But Solana Mobile has not provided any response to this news at the moment.

Potential Increase in Sales Targets

According to Yakovenko's interview at the end of last year, the team is discussing the next steps for the blockchain phone project and believes that achieving sales of 25,000 to 50,000 units will bring a more stable user base.

Solana Founder Interviewed, Talks about SOL's Rebirth, Confirms Saga Phone Only Sold Two Thousand Units

Solana Phone Experiment Will Continue Forward

With the successful sale of the Saga phone, Solana has gained valuable experience, including market price acceptance, phone practicality and positioning, hardware specifications requirements, and other potential use cases such as phone owners becoming precise marketing labels for project teams airdrops. If the second-generation phone is indeed launched, the team will likely face challenges in a more systematic manner.

As the market continues to evolve, the future of blockchain phone sales remains promising and worth looking forward to.