Facebook Looking To Compete with Google’s Android Phones?

The stories keep coming about Google’s efforts to dominate the smartphone market with their Android Operating system. Well itturns out another internet media powerhouse is trying to make a play for stardom and riches in the world-wide mobile market.

TechCrunch (no relation to Observer Publishing LLC) reported this week that Facebook may be trying to develop its own smartphone OS and accompanying hardware.

Specifically, Facebook wants to integrate deeply into the contacts list and other core functions of the phone. It can only do that if it controls the operating system.

Two high level Facebook employees – Joe Hewitt and Matthew Papakipos – are said to be secretly working on the project, which is unknown even to most Facebook staff.

Its a novel concept to hear about Facebook trying to find a deeper connection with its userbase. Back in 2006, I often referred to Facebook as an online operating system and that was before they opened the platform up to developers and proved that FB was more than an “app” but a network for its customers to connect via a number of applications. If you’ve ever used Facebook you’d realize how hard they make it to export contact info into other e-mail applications. This would allow FB to have a stranglehold on their customers information and relationships.

Personally, we don’t see this being successful if it happens at all. Its a lot easier to integrate Facebook into a smartphone UI like HTC’s ‘Sense UI’ than it is to have a stand-alone phone operating system. Some carriers may want to distribute a FB branded phone, but to think that they could capture a meaningful share is a bit of a stretch.

More to come as the story unfolds….

Google Provides More Details on TV Service

Google took time out of its busy schedule of world domination to share more details on its new TV service.

The service combines DVR, integrated google search, web browsing and on-demand video all within your TV set. Key partners include:Sony, Logitech, Intel, and DISH Network. (click on links to see their interpretations of what the partnership will bring).

In the meantime, check out this video from Google:

Industry Analysts Predict Tablets To Eat Into PC Industry Volumes

Two significant reports came out today from PC industry watchers which suggest that the exploding tabletform-factor, popularized by the Apple iPad and pending Google Android powered devices, will eat into traditional computer volumes.

Maynard Um with UBS Investment Research issued a note to investors this week, in which he increased his price target for AAPL stock to $350, up from $340. He said there is no evidence that the iPad is having a negative effect on Mac sales, but it is “adversely affecting the PC industry.”

“Sales of traditional notebooks appear to be feeling pressure from the iPad, causing a scramble by vendors to launch iPad-like tablets,” Um wrote. “We believe that a majority of this impact is occurring on the lower end of PC sales as the iPad is priced close enough to this range that it becomes attractive to consumers looking to make purchases within this segment.”

He continued: “We are not sold that the iPad is purely cannibalizing PC sales, as the functionality of the iPad cannot yet deliver the functionality of notebook PCs. However, consumers who purchase iPads may be more willing to delay purchases and upgrades of existing PCs.”

In the second report, Ben Reitzes an industry analyst from Barclay’s Capital, lowered his sales estimates for regular PC’s and raised his expectations for Tablets.

Reitzes tweaked his tablet estimates in the opposite direction, raising his 2010 forecast to 15.85 million units (up from 15.2 million earlier) and his 2011 forecast to 31.2 million (up from 28 million earlier). He cites three main factors for the increase: greater availability of the iPad; upcoming international launches of the device; and imminent tablet launches from other manufacturers. Though the tablet category remains relatively new, Reitzes points to “strong initial demand” as evidence that sales will rapidly increase over the next two years.