Friday, June 1, 2012

Facebook to Enter Smartphone Market?

by Holly Shoemaker 

Facebook has had its share of good and bad press regarding its initial public offering (IPO). Despite that press, Facebook seems likely to advance its plans to gain more customers in the mobile arena. Late last week, the New York Times reported that Facebook may attempt to enter the smartphone market.

According to reports, Facebook has hired six former software and hardware developers who worked on the iPhone. The report also indicated that one newly hired employee worked on the iPad.

Background Information

Facebook’s attempt at entering the smartphone market is not new. In 2010, the company unsuccessfully attempted to build a smartphone. A report last year also speculated that Facebook and HTC entered into a partnership to build a smartphone nicknamed “Buffy.”

Concluding Thoughts

If Facebook is successful, its smartphone should not pose a threat to Apple as Google is the company trying to create a more-integrated web experience built around is products. The timing of this news also comes as Google finalized its acquisition of Motorola Mobility last week, a move that left some phone device makers like HTC upset.

Facebook knows it needs to improve its mobile position in the marketplace. If Facebook can advance its smartphone plans, it will give the press, investors and consumers something to focus on besides if the company had a successful of unsuccessful IPO. The answer to the IPO question will always depend on the person asked.

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