MVNO cell phone provider Helio has announced plans to open a series of Helio-centric stores in several major US markets. The first will be located between the Apple Store and Banana Republic at the Third Street Promenade in Santa Monica.
As you can see from the render above, the store will sport some hip architecture courtesy of notable design firm Gensler. In addition to the flagship Santa Monica location, other venues will be opened throughout the coming year in New York, Denver, San Diego, Palo Alto and elsewhere.
Although their press release indicates that Helio is experiencing some success, I’m forced to question the legitimacy of such a claim. It’s clear that the company is going through loads of cash with their operating costs, advertisements, building new stores, etc. For all that overhead though, I’ve yet to see a single person wielding a Helio device. I know New Orleans isn’t exactly a technological mecca, but there is no shortage of young people and Myspacers here. I’m wondering if perhaps their rapid expansion is overly optimistic and financially foolish. Any thoughts?
Helio’s First and Flagship retail store [SlashGear]
I’ve only had one chance to see a Helio in person. It seemed nice enough, but the demo unit didn’t have any service, and a demo cell phone without service is almost as bad as those BestBuy demo laptops that can’t do anything but loop that demo reel. So, I didn’t get to test the phone out much. I would think, however, that for a new phone manufacturer to make any headway in today’s market, they can’t start small and work their way up, especially for the populatiry-driven youth market. If they don’t get their name out there in every way possible, they’ll have a hard time catching on.
Case in point: Tapwave Zodiac. I loved mine, and others loved theirs. But they took too long to get to mainstream brick-and-mortar stores, and ran out of money. Plus, Sony announced the PSP way too early, taking the thunder out of the Zodiac’s revolutionary mobile gaming experience. Without instant momentum, it’d be hard for the Helio to avoid such a fate.
I tend to agree with Brian on the observation.
Helio, is not new in their quest for gain in the marketplace, specially if they have to bank on myspace’s userbase. However, I find it really hard to believe that openning stores would serve them any good, not to argue anything bad will come out of that, Third Street Promenade is not a cheap place to have a store at, but a good place for LA start-up with so many people going through there.
I have yet to see a single person carrying helio phone, with so much advertisement in town and many agents carrying their ad material in stores. One would think that they pose to break into the marketplace, I would only wish them to do so before they ran out of money…;) Both companies, SK-Telecom and Earthlink, have sizable parent companies to assure them of the success. I seems like there is a greater picture in play here.
If they succeed, given 2-3 year run in that kind of spending mode, they will be another historic success by a start-up in the crowded marketplace.
I’m not certain what they business model will be besides offering more capable phones.
Kudos to South Korean company to vest into American marketplace with such an impact, at least at start-up stage.
I’ve also heard rumors that a store was opening in Chicago as well.
I’ve also heard rumors that a store was being planned for Chicago as well.
There are sites (HelioFriends.com) that offers a $150 rebate on the phone. Users can buy a HERO for only $50 after rebate. Plus, Helio is offering a “no-contract” promotion for MySpace users. They are definitely trying to pull all the strings to reach their goal of 3 million subscribers by 2009. IMO, they are sliding down a slippery slope to failure.
The last thing we need is Scientologists opening their own cell phone ventures. I say good day Sir!
http://www.helio.com/page?p=investor_relations
440 million to blow through how long will it take
is a helio phone located in verizon wireless stores.
There will be a FREE Grand-Opening Party at the New York HELIO Store on
Thursday, June 28th. We’re playing between 8-10pm!!!
It’s on Broadway, just North of Houston Street.
Hope to see some of you there!!!
Thanks,
kevin fox
NYCS
http://www.MySpace.com/NYCSmoke
I can’t wait till i get that phone in my hand. I will never let it go, only when they put a store in Chicago
PLEASE PUT A HELIO IN CHICAGO
thank you