Original magicJack being discontinued?

nailgunner · Post by **nailgunner** » Sat Jun 02, 2012 12:23 pm

I still have not received my email offer.

There was a copy of the email, and a post, however that caught my attention on another forum:

http://www.dslreports.com/forum/r270780 ... Jack-Plus-

Near the end of the 2nd paragraph, near the end, is this line:

...we will not be selling the original magicJack by the end of this year...

radzkillah · Post by **radzkillah** » Sun Jun 03, 2012 12:04 am

seriously no way I'm giving in to this . just become an mj customer for two months compared to mj neanthertals here ..

so how does it work? Forget-Bout-It like the mJ PC App?

nailgunner · Post by **nailgunner** » Sun Jun 03, 2012 1:00 am

I have 2 opinions, stated in this forum a few times, and based on nothing but using MJ for 2 years and becoming acquainted with how Dan runs the company.

1) I personally would not buy the Plus for at least another 6 months until they get all the issues resolved, regardless of any sale price.

2) I think this is the first step in eventually not supporting the regular MJ device. My guess would be 1 year after they quit selling it.

It seems pretty obvious that they want users to quit using the regular device and switch to the Plus. If I end up sticking with MJ, which is highly unlikely at this point, I will stay with the regular MJ until they quit supporting it and it stops working. At that time I would either buy the Plus, and maybe get lucky with another 1/2 off sale, or move on to something else.

SteveHC · Post by **SteveHC** » Sun Jun 03, 2012 2:03 am

As far as I can tell the MJ+ is now pretty much set hardware-wise and its current firmware works well; problems that some people experience generally do not seem related to either the hw nor the fw. They're encouraging people to get the Plus because it has the capability of accepting additional features via firmware upgrades, and it's a waste of resources to continue to manufacture and distribute two different hw models of a very cheap electronic device. Having said that, there's nothing so different about the basic functionality of the Plus vs. the last version of the original MJ that there's any reason to believe that the original MJ will not remain functional on the MJ Vocaltec system for at least years to come.

FWIW, I'm using the MJ+ as a stand-alone device, the last version of the original MJ (with Windows XP on a cheapo netbook that accesses router via Wi-Fi), and the MJ iOS app (on a 3rd gen. iPod Wi-Fi Touch). While overall functionality is similar across all 3, if I had to choose I'd have to say that the MJ+ currently performs better than the original MJ device does. (And the functionality on the iOS app on the iPod Touch via Wi-fi is truly outstanding, btw.) Of course, when using the MJ+ as a stand-alone device you lose the availability of pcphonesoft's add-ons; however, between the flash rom in the MJ+ and the MJ Vocaltec system there's still some room left for some of those add-on features to be incorporated into MJ+'s functionality.

nailgunner · Post by **nailgunner** » Sun Jun 03, 2012 2:50 am

SteveHC wrote:it's a waste of resources to continue to manufacture and distribute two different hw models of a very cheap electronic device. Having said that, there's nothing so different about the basic functionality of the Plus vs. the last version of the original MJ that there's any reason to believe that the original MJ will not remain functional on the MJ Vocaltec system for at least years to come.

That would certainly be a reason to quit making and selling the regular MJ. But that certainly is not a reason to offer the new one at half price and transfer unused time from the old one to the Plus.

By encouraging current users to ditch their regular MJ's it points to them wanting to get it retired. It would be easy enough a year or so after they quit selling it to do a "Lucky You" update to the Plus and not to the regular MJ. Time will tell.

Edit: Of course it's also possible, despite the claim in the email that they have a "limited amount of magicJack Plus in the warehouse and you might have to wait if you don't act now", that they have a TON of them in their warehouse and need to sell them asap to make their quarterly sales report looking better by June 30.

SteveHC · Post by **SteveHC** » Sun Jun 10, 2012 5:23 pm

They want to unload and then no longer manufacture the original MJ device beyond this year because they don't want to have to manufacture and market more than two different devices at a time. See my post in "MagicJack News" for the latest re: the next version of the MagicJack device, which will sport Wi-Fi connectivity.

Ongoing usability of the original MJ device should be no problem whatsoever, as all of the devices - past present and future - will all continue to make use of MJ's basic VOIP service (which doesn't really change from one device to the next). Each successive version of the hardware simply includes new features (i.e. Wi-Fi connectivity, DECT 6 base station functionality, and eventually 4G "hotspot" functionality as well).

nailgunner · Post by **nailgunner** » Sun Jun 10, 2012 6:45 pm

SteveHC wrote: Ongoing usability of the original MJ device should be no problem whatsoever, as all of the devices - past present and future - will all continue to make use of MJ's basic VOIP service

I'm not a computer engineer and, surprisingly to some I'm sure, I don't pretend to be one. But it seems to me that if the chip in the regular MJ is different from the chip in the Plus, it wouldn't be that far a reach for them to quit supporting and updating their systems at some point in the future on changes so that the regular MJ will cease to work.

There is a cost to them, whatever it may be, to support both devices. My opinion is that at some point in the future they will quit supporting the regular MJ.

But if you insist there is a 0% chance of that happening, I will defer to your knowledge of the situation.

SteveHC · Post by **SteveHC** » Sun Jun 10, 2012 7:11 pm

nailgunner wrote: I'm not a computer engineer and, surprisingly to some I'm sure, I don't pretend to be one. But it seems to me that if the chip in the regular MJ is different from the chip in the Plus, it wouldn't be that far a reach for them to quit supporting and updating their systems at some point in the future on changes so that the regular MJ will cease to work.

There is a cost, whatever it may be, to support both devices. My opinion is that at some point in the future they will quit supporting the regular MJ.

But if you insist there is a 0% chance of that happening, I will defer to your knowledge of the situation.

- I TRULY don't see that happening, at least not within at LEAST the next 2-3 years. Does an AT&T analog phone still work on virtually any phone network or service (except PBX) even though it was discontinued by the manufacturer 25 years ago? OF COURSE. Did your original MJ device suddenly stop working when MJ came out with the Plus and then ADDED stutter tone for voicemail detection to the Plus after the device was initially released? OF COURSE. Will there EVER be such a *complete* "firmware flash" for the Plus that would render it to be such a different device than it is now that the MJ phone service would no longer be compatible with the original MJ device? OF COURSE NOT! It's the same principle with VOIP and MJ. REMEMBER: These devices are VERY small, VERY simple, VERY cheap devices that in fact have VERY little - pretty minor, actually - "upgrade capability" built into them - they're just too cheap, with too little "flash-able" memory and NO *processor* (or other circuit board-related) upgradability WHATSOEVER.

And even if what you "fear" DOES happen 3-5 years from now, so what??? Let's face it, a MJ device and its associated phone service essentially PAYS FOR ITSELF within a mere 2-3 months MAX!!! I've had my MJ service for about a year now, and it's ALREADY saved me about $1,200 dollars! So even if my MJ device crapped out on me TOMORROW, big deal! I'd just get a new one and transfer my MJ number over to it; even if the new device cost me $100 I'd have STILL saved at LEAST $1,000 in combined annual "landline" and cellphone cost reductions - and that's just regarding my ONE MJ phone number!!!

And trust me, MJ knows very well the number of original devices out there; they're sure as heck not about to risk losing all of those subscribers simply because of new hardware product releases... they'd stand to lose too much revenue. Heck, they've even found a way to make money off of simple $10/year APP-ONLY phone service accounts!

Lastly, MJ-Vocaltec-YMAX is VERY much aware of EXACTLY who their PRIMARY target market is, namely people who need ULTRA-low cost phone service due to declining (or VERY small) personal incomes; they know that those of us who have more money coming in are NOT going to be a significant source of market expansion for them (except for small businesses, which *will* be). Their entire operation is designed to compete against the likes of NetTalk, NOT Vonage or other higher-priced phone service companies, not even OOMA. They're going to continue to do everything they can to hang onto the "lowest-end" market while trying to grab *more* of that market. To MJ, anything *beyond* that is just incidental, lucky "gravy."

nailgunner · Post by **nailgunner** » Sun Jun 10, 2012 7:32 pm

Now don't get yourself all worked up. Take a deep breath. I'm projecting it won't happen for at least 1.5 years. As I said earlier, I think after they quit selling it NEXT year, they will give 1 year's notice and give users a chance to switch over. I couldn't care less one way or the other what they do. The device has served me well for over 2 years.

But a device that requires internet access and needs to connect into their computer system to work correctly is far different that an analog phone continuing to work over phone lines. The old MJ device will need continued engineering support, regardless of how easy it is for them to push "lucky you" changes through to the device.

I have no clue what that extra engineering will cost Dan, but if he has an accountant with a basic understanding of cost accounting on his staff, Dan does know. He should be getting a monthly report of the revenue stream from the regular users and the Plus users. And with an idea on what % of users will switch over to the Plus, it becomes a basic math question. IMO, at some point the decision will be made, if it isn't already in their plans. Whether it's 1.5...2...or 3 years is debatable. But at some point in the future, the regular MJ will quit working on their system, IMO. Of course it might still work with the GVJack App.

SteveHC · Post by **SteveHC** » Sun Jun 10, 2012 8:30 pm

nailgunner wrote:Now don't get yourself all worked up. Take a deep breath. I'm projecting it won't happen for at least 1.5 years. As I said earlier, I think after they quit selling it NEXT year, they will give 1 year's notice and give users a chance to switch over. I couldn't care less one way or the other what they do. The device has served me well for over 2 years.

But a device that requires internet access and needs to connect into their computer system to work correctly is far different that an analog phone continuing to work over phone lines. The old MJ device will need continued engineering support, regardless of how easy it is for them to push "lucky you" changes through to the device.

I have no clue what that extra engineering will cost Dan, but if he has an accountant with a basic understanding of cost accounting on his staff, Dan does know. He should be getting a monthly report of the revenue stream from the regular users and the Plus users. And with an idea on what % of users will switch over to the Plus, it becomes a basic math question. IMO, at some point the decision will be made, if it isn't already in their plans. Whether it's 1.5...2...or 3 years is debatable. But at some point in the future, the regular MJ will quit working on their system, IMO. Of course it might still work with the GVJack App.

- I understand what you're saying. I believe the original MJ devices will be *far* more likely to experience hardware failure (due to age and heat-related "wear & tear) LONG before they'd otherwise fail to recognize any completely changed (if any) *basic* VOIP service-related "commands" (etc.) sent to their processors from the MJ/YMAX "network." I don't even foresee any real changes to voip-related IP packet delivery technology on the horizon. I don't even see IPv6 being adopted on anything resembling a widespread basis for at *least* 10 years, and even *then* it wouldn't affect service to old MJ devices unless MJ decided to change its server's IP addresses to IPv6 addresses. That's all I'm really trying to say here.

nailgunner · Post by **nailgunner** » Sun Jun 10, 2012 9:46 pm

From history, and their latest financial statements, I think it's fairly obvious that they make the bulk of their money from selling new devices as opposed to the phone service itself.

My opinion is that they will be proactive in making the devices useless. Something along the lines of pushing through an "unlucky you" update or not allowing renewals on the device. Only time will tell.

I also think that because of the large number of regular devices that they have sold, it's easy to way over-estimate the number of regular MJ users actually using their devices. Both MJ users I know, that didn't give up on it and throw it away after the first month and actually used it for a few years, have dumped it and I am right behind them. I have scoured the internet looking for their actual number of users and have come up empty. I think it's a pretty low % of original purchasers, and gets lower every year. Based on that, I think Dan will come to the same decision on blocking exchanges, that the number of users who will get pissed off will be low, and just cut the thing off.

SteveHC · Post by **SteveHC** » Sun Jun 10, 2012 10:58 pm

nailgunner wrote:From history, and their latest financial statements, I think it's fairly obvious that they make the bulk of their money from selling new devices as opposed to the phone service itself.

My opinion is that they will be proactive in making the devices useless. Something along the lines of pushing through an "unlucky you" update or not allowing renewals on the device. Only time will tell.

I also think that because of the large number of regular devices that they have sold, it's easy to way over-estimate the number of regular MJ users actually using their devices. Both MJ users I know, that didn't give up on it and throw it away after the first month and actually used it for a few years, have dumped it and I am right behind them. I have scoured the internet looking for their actual number of users and have come up empty. I think it's a pretty low % of original purchasers, and gets lower every year. Based on that, I think Dan will come to the same decision on blocking exchanges, that the number of users who will get pissed off will be low, and just cut the thing off.

- Well I certainly think your line of reasoning is "unique" to say the least, but you're certainly entitled to it!

cell14 · Post by **cell14** » Sun Jun 10, 2012 10:58 pm

I read somewhere that the retention after 1 year of use was like 31.5%, but there is no way to say because they stay very secretive.

nailgunner · Post by **nailgunner** » Mon Jun 11, 2012 2:25 am

cell14 wrote:I read somewhere that the retention after 1 year of use was like 31.5%, but there is no way to say because they stay very secretive.

Seeing as how most bought it after seeing an infomercial, that sounds a tad high. If it is correct, 1/2 of them probably "stayed" because they didn't know they had to turn off the auto-renew option.

cell14 · Post by **cell14** » Mon Jun 11, 2012 11:45 pm

If it is correct, 1/2 of them probably "stayed" because they didn't know they had to turn off the auto-renew option. Laughing

You are are right. They were probably too busy trying to call their friends in Alaska and got distracted.
And do not forget that we belonged to those mysterious 31.5% as well. I had the service for almost 3.5 years. Only these days, I cannot figure out one reason to sign up with MJ.
Only that blue light is something I miss from time to time.