The "Facebook Phone" once again reared its rumor-filled little face in the headlines today. This time, Bloomberg tells us that the social networking giant is teaming up with manufacturer HTC for the purpose of creating a Facebook phone that could be released as soon as late spring 2013.
As we know, of Facebook's 900 million registered users, more than half are now accessing the social networking platform via mobile device. Nonetheless, Facebook isn't generating much of any revenue from the mobile ad channel when compared to others in the space.
Chief Executive Officer Mark Zuckerberg could use a Facebook phone, with social-networking features built-in, to woo marketers and assuage concerns dragging on the company’s shares.
Sources "with knowledge of the matter" admit that Zuckerberg is nervous about Facebook's perceived inability to break the bank on mobile and wants the device to be an attractive, must-have phone for Facebook junkies and other social networking addicts.
“Usage is shifting to mobile, and they have not been able to monetize mobile,” Victor Anthony, an analyst at Topeka Capital Markets, tells Facebook. “To the extent that it’s a device you own and carry around with you at all times, and it ties into the Facebook experience, it will be beneficial. They could then put a lot of ads onto the platform.”
Source: Bloomberg
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