According to the secret news source two high level Facebook employees – Joe Hewitt and Matthew Papakipos – are said to be secretly working on the project, which seems to be related with mobile device hardware and software development related.
Though it assumed that one of the main reason behind iPhone success is Facebook as arround 95%+ iPhone user have Facebook apps in their iPhone. But still Facebook probably considering any long-term threats from Android or iOS to its social network. So Its working on its own Mobile Device.
Joe Hewitt is known for creating the native and web-based iPhone apps for Facebook; however, he also helped create Firefox and was on Parakey, a web-based operating system, which facebook acquired.
Matthew Papakipos led the Google Chrome OS project until June, 2010 but then quit and moved to Facebook. Its assumed that he would not have left the project before its completion unless something really interesting lured him away. Something like a Facebook Phone, for example.
Facebook is working on a mobile, said by someone who has knowledge of the project. Or, they’re building the operating system for the phone and working with a third-party to actually build the hardware. Which is exactly what Apple and everyone else does. Also like What Google did for Goolge G1 or Nexus to introduce their own Mobile OS Andriod.
Though all mobile operating system like iOS for iPhone and other iDevice and Andriod has built is facebook apps but still 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.
Something like FacePhone is not impossible considering their user number(550M+) and growth, but builting a total new OS which could complete with iOS or andriod will not be close to easy and i personally don’t think this type project is possible to run secretly.Try to recall Google bought Andriod few years ago, and it was opensource still it took Google Few year to release a completely working and acceptable Mobile Platform. So a complete new hardware is very possible, but a complete separate OS might not a an easy thing to come so quick.