INQ just proved that its so-called Facebook phone really exists, at least in pre-production form. Demonstrating the device seems like a great strategy given that the social network recently denied that it had a tie-in with HTC smartphones.

INQ Channel Manager Andrew Bennet demonstrated the INQ Cloud Touch phone in a video captured by TechCrunch. The device runs the Android operating system and resembles a white iPhone with Facebook icons on the home screen. Four buttons from the social network grace the top of the home screen:

  • People links to a news feed consisting of friends’ status updates and other activity on the site.
  • Events takes you to the invitations sent to you on the site for present and future activities — note that the Android calendar has a separate icon that leads to the Google application.
  • Notifications leads to newsfeed items relevant to things you’ve clicked on and so forth.
  • Places links to the geolocation service, where you can check in and find out your friends’ locations.

One aspect of the phone that has little to do with Facebook per se: INQ put Spotify on the device instead of the native Android music player. That jibes with the plan to launch the gizmo in Europe first this May, and we wonder whether the U.S. version will have a different music application instead of relying on Spotify to expand its service to the U.S.

The most palatable aspect of INQ Cloud Touch phone, in my humble opinion, is the possibility that it will have a price well below what iPhones cost. TechCrunch said that it might go for as little as $50 with a cellular contract and $250 without.

What do you think about the demonstration video? Does the footage make you want your own phone optimized for Facebook?