Rumors are swirling that Facebook is planning to create their very own Facebook phone. Specifically, they are said to be working with HTC to create a smart phone that runs on the Android operating system. But others argue Facebook may be creating their own OS from scratch. There are pros and cons for each scenario. The Android OS is incredibly popular, but it is a little strange to think a Facebook phone would run on Google OS. Creating their own OS would be time and cost intensive, but would absolutely set the phone apart. Of course, no matter what operating system the phone ultimately ends up running, it would be fully integrated with Facebook. Which means it would also be integrated with all of Facebook's apps, like Zynga, Spotify, and the newly acquired Instagram. The earliest we could see this phone is late 2012, but if Facebook is creating their own OS, it is more likely to be released in 2013. Either way, it will be very interesting to see how this turns out - for Facebook, and the mobile industry in general.