Facebook's Zuckerberg: We're Not Going to Release a Phone
Facebook (NASDAQ: FB), the social media giant, released its earnings on Wednesday. On the company's earnings call, CEO Mark Zuckerberg stated that the company did not intend to release a smart phone.
"Say we release a phone," Zuckerberg said. "We sell 10 million units. Who cares?"
Zuckerberg's larger point was that the company's goal was to maximize the number of users on Facebook -- currently near 1 billion. Releasing a smart phone wouldn't help the company achieve that goal. Even if the phone was incredibly successful, it would still pale in comparison to the number of people who already use Facebook.
Meanwhile, Amazon (NASDAQ: AMZN) is also be rumored to be readying a smartphone. And, in Amazon's case, it might actually make more sense.
Amazon's core business remains in selling things to people. As an increasing number of people shop on their mobile devices, and more and more digital goods (like ebooks, movies and video games) are consumed strictly on the device they are purchased from, Amazon may have a vested interest in controlling that device.
Facebook reported fourth quarter earnings per share figure of $0.17, more then the $0.15 analysts anticipated, on revenue of $1.59 billion -- more than the consensus analyst estimate of $1.53 billion.
Despite the solid earnings report, shares of Facebook dropped after-hours, falling about 4 percent, back under $30 per share.
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