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Facebook might just be in the process of developing a Facebook Phone, though it has vehemently denied TechCrunch’s sources with a public PR reprimand. Now however, it does appear that there’s something behind all of this, and that while Facebook might not actually be building a phone, it's probably in the process of creating its own mobile operating system, while developing the phone with a third party manufacturer. They could very easily also be using Android as the base, as certain relevant hires in the recent past indicate.
It’s all unclear – would Facebook be looking to distribute the OS (sans manufacturer customization) like Google does with Android? Would it be releasing a singular device with an exclusive OEM tie-up? And like the Nexus One, could that pave the way for more manufacturers?
UK-based INQ's offerings stand out in particular as they were always geared primarily towards the social, and, the INQ1 had been dubbed the Facebook Phone for a while as well. They might just end up being the lucky beneficiary, especially after the marked reference to it in the PR denial.
Whoever’s manufacturing it, and however much Facebook would like to deny they are “building a phone”, this, if true, would still mark the first native and dedicated Facebook integration from the hardware up, and you can be sure it’s gonna run deep.