“First of all, we’re not a hardware company,” Zuckerberg responded unequivocally to a question from Reuters’s Alexei Oreskovic. “Second of all, our goal is not to sell anything physical; our goal is to make it so that everything can be social.”
Zuckerberg’s response isn’t a surprise; Facebook has said from the beginning that it is not building a phone. What is interesting, though, is that Zuckerberg explained his rationale for why building a phone would be a bad idea for the company he built.
“It would be pretty silly for us to go after a strategy that focused on selling a small number of phones,” Zuckerberg said.
His explanation was twofold. First, if the company built a phone, it would only control a small percentage of the market. Even if it sold 10 million or 20 million phones, that’s still a really small chunk of the mobile pie. Second, such a strategy risks alienating the partners Facebook needs to make mobile more social.
So Facebook is not building a phone. What is it doing?