The New York Times, cited unnamed sources, which included employees of the social- networking giant, that suggested the company is in the process of hiring smartphone engineers.
Facebook has admitted that it is struggling to profit from its enlarging mobile phone audience.
Besides also floating on the stock market, it also recently launched a mobile app store.
Currently, The App Center provides links to Facebook enabled applications with Google Android stores and Apple’s IOS; however, in the future developers will be able write applications that will be put in Facebook’s store exclusively.
The report quoted an employee from Facebook, who said that Mark Zuckerberg, the site’s founder, was concerned that if the company doesn’t design a smartphone soon, the social network will only be an application used on mobile platforms of other companies.
It has been reported that the company has been working on a smartphone for a while now, and Techcrunch reported in 2010 that the company was creating a mobile phone, in secret, however, this project has not gone anywhere.
Its desire to enter the market may be because of advancing pressure to improve potential sales in the mobile phone industries.
A spokeswoman for Facebook referred the BBC to a written statement by the company that its smartphone strategy is basic – the company thinks all mobile devices are better if they’re deeply social, and they’re working with different industries such as OS providers, operators, hardware manufacturers, and app developers to bring a strong social experience to people world-wide.