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Facebook works on own phone (again)

Kathryn McConnachie
By Kathryn McConnachie, Digital Media Editor at ITWeb.
Johannesburg, 28 May 2012

Long-standing rumours of a “Facebook Phone” being in development have been given new life lately, as reports have emerged that the social network hopes to release its own handset by next year.

The New York Times cites a number of sources close to the project, who spoke under the condition of anonymity, confirming that Facebook has hired former Apple software and hardware engineers to work on a new smartphone.

The first reports of a Facebook phone emerged in 2010, and according to sources, the social network is on its third attempt to develop a viable product.

At the end of last year, it was reported that Facebook had entered into a partnership with HTC to build a unique handset, codenamed “Buffy”. This project is said to still be in the works, but Facebook is said to be looking into other smartphone projects too.

The social network is yet to confirm or deny the existence of its own in-house smartphone project, giving only a generic statement saying: “We're working across the entire mobile industry; with operators, hardware manufacturers, OS providers and application developers.”

While until now, Facebook has just been an application, it has been noted that the social network's recent pushes in its mobile software offerings point towards the development of a holistic mobile operating system.

Facebook now offers “Facebook Camera” (a Facebook-centric photo sharing app, not dissimilar to Instagram), “Facebook Messages” (the social network's answer to BBM or iMessage), as well as its soon to be released App Centre. Business Insider also reports the social network has shown an interest in buying mobile browser, Opera.

The fact that the majority of smartphones are marketed with deep Facebook integration will, however, not make Facebook functionality a draw card by itself. While a Facebook phone would certainly struggle to compete with Apple in the high-end market, there could be potential in the lower end, and especially in developing markets where the Facebook mobile app acts as the primary means of Internet access for many users.

It has also been noted that Facebook's large cash reserves could place the social network in a position to buy a cellphone manufacturer - not unlike Google's recent acquisition of Motorola Mobility. While the details remain few and far between, it is inevitable that Facebook will make a move to improve its standing in the mobile space - especially when it comes to monetising its constantly growing mobile user base.

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