January 31, 2013
Investors Frown on News Facebook Phone Not in Works
Facebook CEO Mark Zuckerberg is adamant — the social networking company has no intention of launching its own phone.
The news did not please investors, despite learning Facebook’s revenue had grown 40 percent to $1.585 billion in the fourth quarter.
After Zuckerberg made the announcement — yet again — during the company’s earnings call Jan. 30, Facebook’s stock dipped to 30.10 in after hours trading as of 7:30 p.m.
“We’re not going to build a phone,” Zuckerberg said during the call. “It’s not the right strategy for us to build one integrated system.
“Let’s say we sell 10 million units — that would be one percent of users. Who cares for us?”
Zuckerberg said Facebook will instead concentrate on making its products shine on mobile devices.
Facebook made 23 percent of its advertising revenue from mobile, up from 14 percent in the previous quarter.
“In 2012, we connected over a billion people and became a mobile company,” Zuckerberg said. “We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company.”
Fourth Quarter 2012 highlights
• 1.06 billion monthly active users (MAUs) as of Dec. 31, a 25 percent year-over-year increase.
• Mobile MAUs sat at 680 million as of Dec. 31, a 57 percent year-over-year increase.