Facebook Phone Is Important to Social Network's Future: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2013-04-02 Email Print this article Print
 
 
 
 
 
 
 

NEWS ANALYSIS: Facebook is reportedly working on some sort of smartphone effort. And to the company, such an idea makes an awful lot of sense.

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 April 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 its 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.



 
 
 
 
 
 
 
 
 
 
 
 
 

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