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Tuesday, May 29, 2012

A Facebook Smartphone?


The Facebook IPO has been a flop according to most major analysists. There is even talk that some investors received word from Morgan Stanley that the numbers were being cut, meaning two sets of numbers were given out. The company also has reported a lack of confidence in some of their ad markets.

How can Facebook turn it around?

One idea floating around is for Facebook to move into the business of producing smart-phones. There have been reports about former tech engineers from Apple moving over to Facebook, discussions with HTC, and sources claiming the company is looking to have a phone by next year.

How would this phone be different from other smart-phones?

Apparently it would be developed around the Facebook site. How that would work in terms of particulars is tough to imagine.

Facebook definitely has to do something. I have heard more reports of people leaving over Timeline than any of the other profile changes the site had made. There have been reports over major companies pulling their advertising over a lack of ROI. The IPO has been a bust.

Facebook still dominates the social media world, but to keep growing, and now to keep their new investors happy, something needs to be done. The phone is an interesting idea, although I could easily see it being ‘too much’ with the Facebook integration. It will be interesting to see how they manage it.

What are your thoughts on the idea of a Facebook phone? How should Facebook turn around this IPO disaster?

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