The New York times is reviving rumours of a Facebok phone, saying that Facebook has recently hired half a dozen former Apple iPhone engineers:

Employees of Facebook and several engineers who have been sought out by recruiters there, as well as people briefed on Facebook’s plans, say the company hopes to release its own smartphone by next year. These people spoke only on the condition of anonymity for fear of jeopardizing their employment or relationships with Facebook.

The company has already hired more than half a dozen former Apple software and hardware engineers who worked on the iPhone, and one who worked on the iPad, the employees and those briefed on the plans said.

They go on to report:

“Mark is worried that if he doesn’t create a mobile phone in the near future that Facebook will simply become an app on other mobile platforms,” a Facebook employee said.