A Facebook phone: Ambitious leap or fatal mistake?

28 May

Originally posted on Gigaom:

At this point, the fact that Facebook (s fb) is struggling with its mobile strategy is not really news. The company itself flagged the issue in its pre-IPO documents, saying advertising revenue is not keeping up with expectations, and its $1 billion Instagram purchase was widely seen as an admission that it needs a lot of help in the mobile department. But does it make any sense for the company to build its own phone? Some argue this would be a natural extension of the social network’s strategy, but others say it would be a monumentally stupid move to make and is almost inevitably doomed.

Talk of a dedicated Facebook phone resurfaced this weekend with a report from Nick Bilton in the New York Timesthat said the social network “hopes to release its own smartphone by next year” and has been hiring hardware engineers and developers — including…

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