Facebook Is Secretly Building A Phone
Facebook is building a mobile phone, says a source who has knowledge of the project. Or rather, they're building the software for the phone and working with a third party to actually build the hardware. Which is exactly what Apple and everyone else does, too.
Context & Ripple Effects
Facebook's reported handset-software effort follows Apple's plan to build Facebook into iPhone OS, placing the social network closer to the device layer rather than relying solely on distribution through another company’s platform. The report remains unconfirmed, but its software-first, third-party-hardware framing matters because it describes a bid for tighter control over the mobile experience without Facebook operating its own manufacturing chain.
First-order effects
- If the reported project proceeds, Facebook would have to define the phone’s software experience while a hardware partner takes responsibility for building the device.
- Apple would face a social-network partner that is pursuing a more direct route to users’ mobile screens, even as Facebook integration is planned for iPhone OS.
Second-order effects
- Third-party handset makers would gain a potential way to differentiate their devices through Facebook software, while accepting that Facebook—not the manufacturer—would shape a central part of the user experience.
Third-order effects
- The report points to a system-level competition in mobile: major internet services may seek control of the software layer and use hardware partners to reach users when platform integration alone offers limited control.
The trend: Mobile services are testing software-and-hardware partnerships to turn large user networks into more direct control of the handset experience.