Facebook rumors are about as prevalent as gossip about Kim Kardashian’s love life. For months we have heard about a smartphone that would bear the name of the world’s most popular social network and seen allegedly “leaked” prototypes of a signature blue Facebook mobile device. It would seem that after all the hearsay-driven hype, the rumors just may have some validity to them after all. Today, Bloomberg.com announced that “people with knowledge of the matter” verified that Facebook has in fact partnered up with maker HTC Corp. to create a smartphone of their own that could be released as early as 2013.
Although the plans are not yet public, Bloomberg also reported that Facebook has enlisted former Apple Inc. programmers to improve the phone’s capabilities and has also pushed back the release date to allow programmers more time to perfect their newest venture. Even though Facebook has yet to confirm or deny this “leaked” information, it is easy to assume that this would be the best way to bring much needed revenue to the social network, whose struggling stock prices have been erratic since going public in May.
If the “People with knowledge of the matter” are correct, good things could be in the future for Facebook. Here are three positive results that could be on the horizon if the Facebook Phone rumors are fact:
Ensured success of a Facebook smartphone:
With 488 million people actively using Facebook from their mobile devices in March and more than 500 million active users as of April, it was only a matter of time before the ever-changing Facebook platform would expand into the smartphone market. Facebook essentially pioneered social networking, subsequently changed an entire generation and created a mobile app that is one of the most downloaded social networking apps. Since everything Facebook touches seems to turn into gold, there’s little doubt that a smartphone would be just as successful.
Ad sales would increase:
With millions of users using Facebook exclusively from their smartphones, a key way to increase ad sales would be to offer exclusive ad rights for a Facebook mobile device. Marketers would surely come running to a platform that would provide a social networking feature that would guarantee eyes on their ads. Unlike advertising on a mobile app that is not ensured to end up on every smartphone, a Facebook smartphone would guarantee advertisers traffic, since the social network would literally be built into the phone.
Stock value would increase:
All investors want to see is money, and since they are gambling with their nest egg, they are generally looking for a sure thing. Facebook currently offers nearly all of its best features at no cost to the user, which means little or no physical revenue coming directly from the site. Investors have been less than impressed, and as a result the Facebook IPO has fallen 23% since becoming a publicly traded company. Between the surefire success of a Facebook smartphone and the ability to monetize the phone further by providing exclusive rights to advertisers, this should increase confidence among investors and give Facebook a boost on Wall Street.