The Seduction of Smartphones
“Disruption is their game.”
i. Specific Innovation of Interest
One of the biggest breakthroughs in technology that we cannnot deny is the development of smartphones. We have grown to be so dependent on this innovation and it has brought about various impacts on the dynamics of the world today in many levels. So how is this innovation such a game-changer? This paper will look at the disruptive innovation that is the smartphone, how it has changed the world and the endless possibilities it encompasses.
ii. Rationale for Selecting this Innovation:
I have selected this topic for my paper because it is now viewed as such an essential game-changer, that many of us can no longer imagine how different our lives would have been (in a negative way) had smartphones not have been invented. Furthermore, the growing reliance on smartphones and the expanding support capabilities of the device is likely to continue causing disruptive changes to the world.
iii. Proposed Approach to Development of Paper:
Executive Summary
Smartphones are ingenious inventions that have quickly taken over the dynamics of how we communicate nowadays, so much so that the more 'normal' phones that we used to depend on are dubbed as 'dumbphones'. They are a combination of the normal feature phone as we know it, together with PDA devices, to create something like a micro-computer that allows for accesibility, constant connectedness and convenience.The smartphone is classified as a disruptive innovation as it was able to challenge and change various markets, as well as revolutionize our personal lives, earning itself a reputation of being one of the many creative innovations that we can no longer live without.
Background/Introduction
Smartphones as we know them today are no longer used just for calling or messaging alone. The smartphone incorporates more advanced functions such as wi-fi & 3G capabilities, interactive 3rd party gaming applications, video calling, touch-screen features, GPS navigation and more. Smartphones has enabled consumers to do all these things in just one device, making this particular innovation a convenient, efficient, important and sometimes a complete necessity for most people. The innovation of smartphones is, arguably, one of the most important development in recent years. The functions of a smartphone can be useful not just as entertainment or social networking but also as platforms for people to do work because of the increasing influence of the internet.
Historical Perspective
The phone as a communicating device dates way back to the 1800s. The earliest distinct form of communication through telephone was an invention that belonged to Alexandra Graham Bell. The development of phones in the following years were confined to wire-based technology that were uncommon at that time and rare to see.
The first mobile phones emerged soon afterwards but were still bulky, expensive and not widely available. The next breakthrough was the development of handheld phones which included basic communicating services.
In more recent times, feature mobile phones were developed, supporting important functions such as games, calendar, calculator, messaging systems and so on.
PDA devices were then created by Windows Mobile, allowing users to reply e-mails and various other internet functions, becoming a hit with businessmen who find them particularly useful.
Finally the smartphone, a fusion of the PDA and the feature phone, was launched, Blackberry taking the lead. Apple became the next significant breakthrough, introducing the iPhone which boasts a full touch screen functionality as well.
Current Situation
Today, smartphones are changing the market in ways we may not have imagined. The smartphone has become a piece of technology that transcends definition. Smartphones are not only changing the market and consumerism, they are also starting to change the way we think or act.
- The definition of a smartphone today.
What is smart?
With the emergence of the iPhone, Blackberry and other smartphones that followed, there is a standard and typical set of expectations that encompass smartphones today.
- Touchscreen/QWERTY keypad is the most common design of a smartphone that allows for more user-friendly navigation through its functions
- 3G standards (as compared to 2G standards)
- Functions of a personal digital assistant (PDA): able to send email, messages, has wireless functions etc.
- Supports third party applications
- Web access at high speeds
- Operating systems such as iPhone OS
- The seduction of smartphones.
The smartphone can be said to be something of a necessary temptation. Indeed in the past, the features that the smartphone offers were not needed. We didn’t particularly need internet access everywhere, or the need to be updated 24/7, much a less a gadget that does all of that and more. But ever since the revolution of smartphone, more people have been tempted to purchase this wonderful gadget and the trends have been changing the nature of the market and our behaviours, eventually making a smartphone to be perceived as a necessity now. It has most definitely succeeded in changing the dynamics of the world today.
So what exactly makes the smartphone stand out and lure people in? The smartphone attract people in because of its vast functionality (as listed above) that allows them to acesss so many things, from GPS services to games to instant messaging, that it’s like a micro-computer, convenient and efficient. Another significant lure of the smartphone is its ability to support popular social platforms such as Facebook and Twitter, and its wireless/3G function that is becoming increasingly relevant due to the increasing use of the Internet for a variety of tasks, ranging from entertainment to work. Due to this, people want smartphones in order to be able to keep informed, connected and entertained in a convenient and accessible manner.
- Economic impacts of the smartphone on the mobile phone market
The downfall of feature phones:
In response to the growing preference of smartphones over feature phones, the direct effect of this is the scramble by mobile phone firms to produce their own differentiated versions of smartphones, in order to stay in the game, if not ahead of it. We are seeing unique developments in each dominant player in attempting to have an edge over its competitors, for example, Blackberry boasts its own messenger system. Each feature seems ‘smarter’ than the previous ones, and the possibilities are endless with the constant motivation to keep innovating. Most of us consumers see no reason to look back on feature phones, except that owning a feature phone is less rough on the wallet. One by one, top mobile phone firms are joining the smartphone market and the focus on feature phones is gradually fading, reflecing that the industry is quickly becoming a falling star at the expense of the smartphone industry being a dominant player.
This fall can be seen in recent figures drawn up to compare performances of the feature phone and the smartphone. Recent ones in 2011 show that feature phone shipments were down 29 per cent at 20.4 million units in the second quarter of this year, while smartphone shipments increased by 48 per cent to 21.8 million units compared to the same period a year ago. This means that smartphone shipments accounted for 52 per cent of all mobile phone shipments. Online charts are predicting the growth of smartphones in the near future, and the percentages are constantly increasing.[i] Also, the following graph highlights the trends of the two products.
Source: http://www.adostrategies.com/blog/tag/smart-phone-penetration/ [ii]
Threat to the wireless industry
Another significant effect that is evident from the development of the smartphone is the threat to the wireless carriers. Free instant messengers have been developed following the introduction of the smartphone, enabling users to chat over the internet instead of cellular networks. And because free instant messengers are more attractive, offering better functions such as being able to communicate to a few parties at once and such, they are becoming more popular than texting. This poses a huge threat to the wireless industry. For example, Skype allows people to make calls without relying on a traditional telephone line. Should this idea catch on and expand, it will be a blow to wireless carriers. With the Blackberry boasting its own Blackberry Messenger, Apple is set to introduce a new service called iMessage, its own version of the Blackberry Messenger. With the two giants in the mobile industry having their own messengers, on top of the other existing messengers such as Skype and WhatsApp, text messaging will be almost void and there may come a day when data plans will no longer include texting plans.
Verizon Wireless alone generates as much as $7 billion a year in revenue from texting, or about 12% in total, and texting brings in about a third of the operating income. With substitutes to text messaging coming up, these wireless carriers are being threatened. The slide in fact has already begun in the Netherlands, where texting traffic is shrinking and profits are eroding. Other top players like Samsung and Google are reportedly also working on such services that would allow users to swap free messages over the internet. [iii]
Threat to other related industries
The effects of smartphones are more far-reaching than it seems on the surface. In fact it has extended its effects towards the third-parties affected by the apps boom on smartphones. They may be altering the use of other devices due to the increasing array of activities they use on smartphones. Devices such as laptops, GPS units, cameras and camcorders seem to be used less frequently by smartphone owners. This means that sales of these third-party businesses are being impacted adversely due to the smartphone and its capabilities. Garner reports that PC Shipments in first quarter of 2011 experienced their first year-over-year decline in six quarters, indicating a weakening demand for consumer PCs that could justifiably be credited partly to smartphone domination.
Riding on the smartphone wave
Many industries have been pushed up by the revolution of smartphones. Particularly, they benefit through the smartphone capability to support third-party applications. The most relevant and popular example would be the games by third-party companies that can be played on smartphones. Through the smartphones, gaming companies are able to attain another outlet for profit and/or boosting reputation. Most games and entertainments offer a free trial for consumers to give them a taste of the application first before selling it. It is so popular and so profitable because it thrives from the nature of smartphones; they allow for easy and quick downloading, cheap prices for these apps, and we bring them virtually everywhere almost without fail, making these apps the ultimate time-killer. Plus of course, the growing popularity of smartphones. The all-popular game ‘Angry Birds’, have crashed the market dramatically, costing only $140k to create but has garnered an estimated $70 million in profits, almost 500 times more, and is one of the most profitable games created. [iv] It is through this iPhone app that the game and consequently firm shoot to popularity, and now there are public competitions and merchandises created after it. The gaming industry is being changed as the smartphone opens up a whole new platform for gaming firms to invest in. In fact, Sony has developed the Xperia Play, a fusion of a gaming console and a smartphone, in an attempt to create the best of both of both worlds.
Another industry bolstered by this innovation is the social networking sites. Popular sites such as Facebook and Twitter have created their own smartphone-friendly versions of the application to make it convenient to people. Twitter CEO Evan Williams blogged recently that 46% of active Twitter users regularly use a mobile device to tweet. In the post, Williams said that the number of users accessing Tiwtter on mobile devices had jumped 62% since mid-April. [v] Smartphone friendly versions are tweaked to ensure that notifications reach consumers’ devices even when they are not currently using the apps. This convenience and accessiblity is increasing consumer usage greatly.
Changing consumerism
Another impact is that consumer habits have been changed due to smartphones. Because so much content can be accessed easily through the smartphones, online shopping is becoming more popular as it is quicker to browse through the net while on the way home rather than physically go shopping. Any consumer that physically shops could be comparing retail prices while inside a shop to judge if they are being offered the best prices out there. A survey conducted found that 43% of smartphone users say they have used their phone specifically in a store to assist with their shopping. Of the respondents who use social networking sites to connect with retailers, 63% use it to find out about promotions and 56% use it to browse products. [vi] Furthermore, it is discovered that 24% of all survey respondents expect retailers to provide access to information through apps and social media. We can see how consumer habits are being changed through the growing influence of smartphones. This will shape the market in the future rather differently than what we are used to.
There is no denying how the smartphone has changed the game for not just the mobile market but the countless markets that are affected by this invention, both in good and bad ways.
- Social impact of the smartphones
Blurring the professional and personal division
The revolution of smartphones has brought to us much convenience, efficiency and connectedness. Because of its multi-functionality, we are able to do so many things on the smartphone, ranging from work to leisure. Smartphones are redefining careers, the family unit, social intercourse, personal perspectives and habits and even academically.
The benefit of smartphones towards careers and school is that it makes us more productive. The constant connectedness we get from smartphones makes it possible for us to reply e-mails and the sorts anywhere and any time we want to. With a smartphone in hand, it is easy to always be on the job and multi-task comfortably. According to Vivek Kundar, chief technology officer for the city of Washington, DC’s IT department, the department are “developing dashboards that are pushed out to smartphones with real-time info based on each employees’ job function, like network and data-center uptime.” About 600 of Kundra’s staff of 760 own smartphones. [vii] Although this relates to greater productivity, it also means increased pressure on the employees to have a greater degree of responsiveness towards clients and bosses through e-mail and/or text messaging. For many professionals attempting to carry out work and personal life, smartphones can be a boon. A father attending his son’s soccer match but not having his mind in the game, but instead on his phone and career, is equals to him not being there. The risk that exists is that the individual becomes a workaholic, whether voluntary or not, due to the constant accessibility.
Even students will not be spared from this double-edged sword of smartphones. Nowadays, more schools are incorporating online learning through discussion forums, blogging and materials online. With a smartphone, students can easily access discussion forums at any time in their own comfort and update themselves with administrative as well as academic matters. The fast-paced nature of such online discussion forums mean that it is more beneficial for a student who owns a smartphone that he brings everywhere and can access content any time compared to a student who do not own one. As such, smartphones enhances the learning experience of the student but at the same time does not spare students from the stress that professionals face from expectations.
On the other hand, the smartphone could also be a double-edged sword. While it increases productivity because more people get things done outside office or school hours, they could also end up being distracted by personal things during times of the day when they are required to get work done.
The thin line between work and personal life is being crossed more often than not due to the development of smartphones. As we try to juggle between work and social life simultaneously, we may end up suffering from what is termed the ‘24/7 syndrome’, used to describe a tendency to always be on the job 24/7 even at home.
Changing perceptions and habits
Definitely there are many benefits associated with the creation of smartphones. For one, it has made communication so much easier due to the development of free instant messengers on smartphones. The difference between instant messengers and the usual text messaging system is that instant messengers are faster, more efficient and allows for combined conversation with more than one parties at once. Experts have predicted that number of texts are expected to drop by 20% in the next two years. [viii] Overall it has made it much easier for us to communicate with friends and always stay connected socially.
But of course, the invention presented to us is never bad on its own; it’s how we choose to utilise it. Smartphones have only increased our dependency on technology; our dependency and needs have shifted rather dramatically because of this innovation. Now, it is a necessity for many people to own a smartphone over a feature phone so that they can stay updated socially and professionally. People feel disconnected when they are not constantly checking Facebook notifications, digital news or their emails. It has changed our definition of doing things, making us seem even more busy than before. Our awareness of the easy availability of content through smartphones are creating the need for us to always be doing something. We know we can be doing something all the time, and this makes us feel like we therefore need to be doing something all the time. There are so many endless things to do with a smartphone on hand, that if this accessibility is cut off from us, we feel naked and vulnerable. With a smartphone, we literally hold the digital world in our hands. But with great power definitely comes great responsibility. For those who are unable to draw a clear limit to how much we should depend on these devices, it is all too easy for us to lose ourselves into the danger that technology shuns those around us. Let us not forget too, that the smartphone is still a piece of technology and therefore, cannot be 100% reliable. And if our dependence on smartphones are so great, our expectations will naturaly be higher and that makes us more liable to react more strongly when it fails on us.
The smartphone has effectively connected the world in complicated ways we may not have envisioned before its creation. We are communicating more easily through instant messengers, we can easily access social networking sites, and we are even communicating through global interactive games. Furthermore, smartphones are addictive. Smartphones have become so invasive that it is the one device most people unconsciously bring almost everywhere any time, becoming an indispensable tool in our daily activities, and it is the one piece of technology that is always ‘on’. The entertainment apps that they support can entertain us from hours on end. The ease of communication makes us addicted to staying connected and indulging in all sorts of entertainment that the internet provides, especially since we can access them in our own comfort. The world today is being connected by one common culture, that is the digital culture, and it is not wrong to credit the increasing growth of this phenomena to smartphones. The risk with this new emerging culture is that we become so engrossed with staying connected with the world that we fail to invest in ourselves. Addiction to this culture can make us give up other important things and distract us from our daily tasks.
The power of this innovation for most of us is that we don’t immediately realize its impacts on our lives, nor do we show much resistance. We adapt to it so quickly and comfortably that it seems almost natural, and at the end of the day, we find that we cannot bring ourselves to go back to the days before this innovation came about.
- Future Considerations (ie where we might go – how you foresee things going in future)
1. Flexible smartphone designs: Innovative dual screens have been experimented with by the Kyocera Echo on Sprint. Although there were issues, the idea can go far if executed better. It is possible that in the future, such dual-screen phones can be as thin as today’s smartphone when folded. Another innovation that could come up in recent years would be wearable phones, similar to the wristwatch phones we see in spy-action movies. The flexibility will be endless; phones may be able to be bent, folded and shaped according to preference. Wristwatch style phones can be converted to a phone with a full QWERTY keyboard and folded again to be slipped into the pocket. The closest example to this would be the Nokia Morph, a concept device that allows a malleable electronic device.
2. Augmented reality is another feature that’s being developed. This means that in the future, an app will be able to display landmarks just by pointing the phone at nearby surroundings and possibly locate little details such as the queue at a theme park attraction. The GPS will improve tremendously and will be able to offer more accurate results, taking into account other things such as traffic and weather.
3. Artificial intelligence: Just as there are artificial intelligence robots, smartphones may be capable of doing the same thing, collecting data and being able to predict consumers’ habits and preferences.
4. Better performance: More powerful smartphone are definitely going to be developed to enhance the network features. A system-on-a-chip nicknamed ‘Kal-El’ is said to be five times faster than the current processor used in many smartphones. Chips in the near future (2014) are predicted to be able to reach 75 times faster speed than the chips in smartphones today. The numbers are growing at an exponential rate and no doubt smartphones will be very powerful in the future.
5. Finally, smartphones will grow ‘green’ in the future. Everything from the technology inside the phone to the manufacturing processes are expected to be more environmentally friendly.
Source: http://www.computerworld.com/s/article/9219159/Smartphones_of_the_future_How_they_will_look_what_they_will_do [ix]
While all the above possibilities are very exciting and promise increased efficiency, convenience and accessibility in the future, they may also come with limitations. Once more this can lead to an even greater dependence on smartphones. Eventually there needs to be a line drawn before technology becomes not just invasive in our lives, but our lives altogether.
In an eggshell, the smartphone is a genius invention despite its limation that no one can really deny. The inventors of the smartphone know exactly what consumers want even if the consumers themselves do not necessarily know it themselves, and focus on this. Consumers easily realize that the smartphone is something they want and need, and afterwards the smartphone had little problems in revolutionalising the world, effectively being its own form of advertisement and bolsetering its own sales. There is no doubt that the smartphone is a significant disruptive innovation that is becoming almost indispensable now.
It is worth considering the changing definitions of what is considered ‘smart’ over time. In the past, feature phones were the ones impressing the crowds, but now they are dismissed rather unfairly. Because of the constant changing nature of technology, the smartphone may even be abandoned completely in the future when something ‘smarter’ comes along. Despite so however, there is no denying the magnitude of the impact that the smartphone has left on the lives of the people today, and will possibly continue to do so for a long time to come.
References
[iii] http://www.nytimes.com/2011/10/10/technology/paying-to-text-is-becoming-passe-companies-fret.html?_r=1&pagewanted=all
[v] http://www.computerworld.com/s/article/9185038/Smartphones_other_mobile_devices_boost_social_networks
[vii] http://career-advice.monster.com/in-the-office/work-life-balance/smartphones-pluses-minuses-workers/article.aspx
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