Facebook's mobile risk


Facebook outlines some risks in their S-1 - ranging from Google plus to governments. They mention a risk w.r.t mobile phones - they don't have ads on mobile phones.

It's only a matter of time before they add ads on phone app - so I don't perceive that as a big risk.

Mobile phones are a risk but in a different way.

The big risk in my opinion is:

  • Most people have a limited amount of daily time that they spend on entertainment. For many people time they spend on Facebook falls to some extent in this category.
  • In the past 2 years, the amount of time people spend on their mobile phones has dramatically increased.
  • Options for entertainment are vastly different on mobile than on PC. It's not just the gamers on PCs who are playing games etc. on smart phones. People use their phones in ways they did not their pc's. I play a lot more games on my phone, I never did that on my PC.
  • As people spend more time on apps on their phone - playing games etc, the time they spend on Facebook will start to reduce.
I view the general smartphone platform vying against facebook for people's attention time. This could be a challenge for Facebook, whose business is built on selling the product YOU!

What do you think?