Money makes a hole in the pocket. Yes, post IPO Facebook can afford any adventure and can tie in for further acquisitions. News about Opera browser acquisition, facebook camera iphone app and now Facebook smartphones are the being covered all around the internet.
As far as Facebook’s smart-phone is concerned, it’s the 3rd time Facebook going for it. But the question that intrigues tech-diggers most is ‘why does Facebook need a smartphone so desperately’?
Though there is an enormous consumer demand in mobile industry but there’s already much heat among smartphone manufacturers and even ‘once the biggest tycoons’ are scratching over the barrels under this die-hard sequel. Keeping all this in mind, how would Facebook earn market share even if it happens to come up with its smartphone miraculously.
What this Fuss is all about? It's not about mobile ads surely !
Apparently, it’s all about tacking on the mobile facebook users. Among 1 billion active users, 50% access Facebook from their phones. On a desktop website there are 7-9 ads per page where as on mobile website, there aren’t any ads. Just before the IPO, Mark Zuckerberg revealed its concerns about Facebook’s inefficient revenue extraction from mobiles. Does that mean Facebook should make its own smartphone? Obviously not; you would agree. So, there must be something deeper and more prospective that the most of analysts are ignoring.
In modern business frameworks sustaining single-service business is rather dangerous because sooner or later, your services would be replaced by some other service providers or the demand for ‘service’ would end up. So, providing multi-services would allow Facebook to maintain its composure in future.
Facebook needs to catalyze mobile application development. Google and Apple have already boarded the mobile ship earlier and are now both penetrated deeper into market. 75% of Apple’s total sales arise from iPhone sales. Likewise Google’s Android app development has allowed Google to penetrate deeper into the customer market. To maintain the same reputation as Google and Apple are having right now, Facebook must run the smartphone spree practically.