Facebook has the world abuzz with the possibility of yet another new
smartphone. For months now, reports have been swirling that the company
is working on a phone.
But it seemed that every time it looks like it actually might happen,
the social network company, would bob and weave and then put the idea on
ice. The latest rumor now suggests that Facebook is working with HTC on
a device that will come with a forked version of Android that puts its
social network’s features at center stage. And that technology could be known as Facebook Home when it’s unveiled on Apr. 4.
But why is it happening now? Why would Facebook, a company that has been
so successful online and through mobile applications, try its luck with
a smartphone? More importantly, why would the social networking giant
invest the kind of cash it would take to get such a product off the
ground? Certainly there are better things Facebook can do with its cash
than spend it on a device, right?
But perhaps not. Facebook was criticized last year for not aggressively
mobilizing its social network. Facebook knows that it’s greatest
potential for grow in North America and overseas is on the mobile
platform.
Facebook is now a major public company in the technology industry. It
has to keep growing vigorously to prove its value to customers and
investors. As a result, now more than ever, the company understands that
mobile is the future.
Here are some reasons why Facebook is preparing to introduce a Smartphone.
1. It’s where the market is headed
There’s no debating that the future of the industry is in the mobile
market. Companies around the globe are moving to the mobile space, so
they can make good on their desire to generate the kind of cash that
smartphones and tablets are supposed to deliver to those firms
that are competing there. Considering Facebook is such a major force in
the technology industry, it only makes sense that it, too, wants to
capitalize on mobile as much as possible.
2. It’s all about advertising
If Facebook does in fact sign an agreement with HTC to deliver a product
that puts its many features center stage, it would mean one thing:
advertising really is a very, very important part of the company’s
plans. Yes, Facebook might like to make some cash on hardware sales, but
like Google, it’s in it for the users and the advertising dollars that
go with it. Make no mistake about that.
3. Blame it on Android
Android is arguably the most important operating system available right
now – even more so than Windows. Android is the dominant force in
mobile. Now that Android has hit that critical mass, it only makes sense
that Facebook is following.
4. Facebook Phone Home?
Chances are Facebook will indeed release the Facebook Home forked
Android operating system that’s been rumored lately. And why not?
Facebook has been looking for ways to improve how its services are
embedded in operating systems. Look no further than its integration
across iOS for proof of that. Now with Facebook Home, it can achieve all
of its goals in that area. Look for Facebook Home to be a real winner
for the social network.
5. Shareholders expect it
Facebook’s shareholders have been clamoring for the company to embrace mobile
for months now. Over the last couple of quarters, Facebook has
succeeded at that. Still, it’s not enough. And Facebook knows it. The
company’s push into the phone business reflects its understanding that
when shareholders call, you better listen.
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