Yahoo: Facebook's 'big announcement' - it will be a new search engine?

Published: 15 January 2013

Source: Yahoo News

CCS Insight was quoted in this article about Facebook's latest announcement - the addition of a new search function.

Geoff Blaber, of analysts CCS Insight, believes: "Despite continued media speculation we would be surprised if Facebook was to announce its intention to enter the smartphone market. It's hard to see what a move into hardware would give Facebook in return for substantial and relentless investment. It already has an extraordinary level of usage and engagement on mobile. While full control of the device might offer more scope for advertising and could increase engagement, it is difficult to see sales volumes ever being substantial enough to represent anything more than an insignificant proportion of the more than 600 million users accessing Facebook on a mobile device every month."

He added that even if Facebook matched Apple and Samsung's mobile sales, it would still represent such a small proportion of its existing mobile users. He explained: "Facebook is a horizontal platform the success of which hinges on widespread adoption. As such, the resource and investment required to enter the mobile phone market would far outweigh any benefit and fail to provide the reach required to deliver the next wave of growth."

Read the full article here