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.

Calling App Developers: Facebook Accepting Apps

by Holly Shoemaker

On Wednesday, March 9, 2012, Facebook announced that it plans to allow users to download apps via its App Center, its new online store. The App Center is currently available to developers and Facebook has encouraged developers to get their apps in prior to the consumer launch. Facebook’s App Center should become available to users in the coming weeks.

What Developers Should Know

• The company plans to take 30 percent from app-generated sales.
• To date, Apple has generated more than $1.7 billion in app sales, something that has not gone unnoticed by Facebook. Guidelines for the App Center are stricter than Google, but not as strict as Apple. Facebook, like Apple, will select what applications it offers. Facebook also plans to remove apps when needed. The company will base its standards on items such as ratings and engagement.
• If Facebook does not select specific apps, developers will have the ability to build software using Facebook’s tools and promote their apps via the news feed. 

Concluding Thoughts 

The announcement times well with the company’s initial public offering (IPO), which it will hold next week. Analysts expect the IPO to become the largest one ever for an  Internet company.

This is a good move for Facebook. More users are gravitating toward the company’s mobile site, and the company needs to increase its ability to generate revenue as limited advertising opportunities exist on its mobile app.