The social giant has already hired former Apple employees who are believed to be working with Taiwanese smartphone maker HTC, said people familiar with the project.
The phone is expected to be unveiled in mid-2013, said a source.
In a statement to Bloomberg Facebook said: ”Our mobile strategy is simple: We think every mobile device is better if it is deeply social.”
“We’re working across the entire mobile industry; with operators, hardware manufacturers, OS providers, and application developers to bring powerful social experiences to more people around the world,” it added.
Facebook CEO Mark Zuckerberg, however, said earlier that his company was not running to make its branded phone. ”There are a lot of things that you can build in other operating systems as well that aren’t really taking – that aren’t really like building out a whole phone, which I think wouldn’t really make much sense for us to do,” he said.