Facebook is working with mobile-handset manufacturer INQ Mobile on two smartphones that may be carried by AT&T, three people familiar with the matter told Bloomberg. The devices, which will feature Facebook social-networking services, are due to be introduced in Europe in the first half of 2011 and the US in the second half, said one of the people. AT&T is still considering whether to carry the devices and hasn't made a deal, another of the people said. The new phones are slated to run Google's Android operating system. Facebook hasn't decided whether its name will be used on the devices, one of the sources said. While Facebook declined to comment on plans for specific phones, the company said it continues to work with INQ Mobile, which has previously sold phones with Facebook features. London-based INQ is backed by Hutchison Whampoa and has developed a number of phones for European operator 3. One of the new phones under development with Facebook is expected to feature a Qwerty-style keyboard and a touch screen, while the other would only have a touch screen and resemble the iPhone, according to the report. The devices will go on sale first in Europe through Carphone Warehouse and several European carriers, said one of the sources, who predicted a release in March or early April 2011. In the US, the phones may carry a price of less than USD 100 after AT&T subsidies and could reach stores in July or August.
