The real problem with cell phones

6 comments | 36I like it!
June 26, 2008, 08:19 PM — 

As I was considering what to write about today, I started looking around my office. Over in the corner, I noticed a cell phone that dates back at least five years. It features a backlit keyboard, address book, memory dialing, and a few other extras we thought were great back then.

After that, I found the cell phone that replace it and realized that it was pretty much the same – it had a backlit keyboard, address book, and memory dialing – and even looked quite similar to the device I purchased a few years prior.

Finally, I looked at the phones I have now – a Palm Treo 700p and an iPhone. When I realized that the Treo 700p offered the exact same functionality as my older phones, but added the ability to surf online, check email, and capture video, I was stuck by something that amazed me: where's the innovation?

I witnessed innovation in my iPhone. That device features a touch screen, a unique UI, Visual Voicemail, and easily the best Web surfing experience offered natively on a smartphone today. But it also lacks many of the features I can find in most other smartphones.

What is going on here?

Is it just me or has the cell phone industry jumped the shark? Years ago, it was the bastion of innovation and the place where you could find something new and neat at every turn. Today, it's nothing more than a derivative market that's ruled by a couple major players that are copied by the rest.

Allow me to illustrate.

Before the iPhone was released, the very thought of a touch screen smartphone was unbeknownst to the vast majority of people. Back then, we thought it was cool to add music to our phones or capture video. But in one fell swoop Steve Jobs changed all that.

And by doing so, he literally changed the cell phone industry forever. Now, companies like Samsung, LG, HTC, and others are jumping on the touch screen bandwagon and even Google is trying to get in on the mix with its Android platform. And while each purportedly offer something new and exciting, the truth is, not one is unique.

But why should any device be unique? For the past few years, the strategy set forth by all cell phone vendors has been the same: let the competitors spend all the money on research and development, let them be the first to release an innovative product, and we'll come in later to mop up whatever market is left.

Can you imagine that policy working in any other industry? In the desktop space, that company would have gone out of business years ago. If Norton played by those rules, that company wouldn't even exist. But in the cell phone industry, it has become commonplace.

And perhaps that's why Apple has been such a success. Unlike most other tech companies that don't want to spend the cash on an unproven technology, Apple was ready and willing to do just that. And in the end, it paid off.

But do you know what the worst part is? These companies don't care. They'll keep plugging along, trying desperately to ride the coattails of Apple until something new comes along. And why shouldn't they? In an environment where technology takes a backseat to affordability and design, there's no impetus on the part of these companies to go above and beyond the call of duty.

It's a sad state of affairs, but unfortunately, there isn't an end in sight.

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I like it!
Comments

I agree that manufacturers

I agree that manufacturers aren't always going to be at the forefront of innovation in the mobile phone arena. But there are more and more innovators out there beginning to break into the realm through 3rd party applications that will extend the use of your phone (beyond games, wallpapers and ringtones).

These innovators are pushing the envelope and functionality of your mobile from the basic Maps (Google) to transferable Phonebooks (www.ZYB.com) to Streaming Video Live (www.Next2Friends.com).

So don’t lament too much. Innovation does not totally rest with the manufacturers.
| reply

FINALLY someone that

FINALLY someone that realizes that even though some of these "iPhone killers" have minor features the iPhone lacks, they are still not in the least bit innovative. All those other phones aren't the "original" and because of that they will always just be poor copies of what Apple did right.
| reply

The lack of innovation is

The lack of innovation is not solely the fault of manufacturers, Networks have always been resistant to change, as can be observed with the current rollout of the iPhone 3G. All around the world there are Telcos who refuse to support features like Visual Voicemail and even Caller ID!

The common story is that when the idea for the iPhone was originally thrown at Verizon, they refused it because it was too much of a departure from their current business model; They exact huge revenues every day from people listening to Voicemail on archaic aural menu systems, Locking users to their own value-added features like overpriced Ringtones and data synchronisation Over-the-Air.

The iPhone promised reduced Voicemail retrieval time, Listening to a users own music collection and synchronisation with the users own contact listings. All things that increased the Users Experience, but tore apart Telcos Profit Models.

I wouldn't be surprised if Apple also offered the iPhone to AT&T and Sprint too, before finally hitting paydirt with Cingular. AT&T may have even dissolved Cingular as punishment for undermining the Trusted Revenue Models.

Here in Australia, Telcos only recently discovered Value-Added features.
The iPhone is a huge threat to their Revenue since Consumers are not restricted to Telstra-sanctioned content; in fact the iTunes Store and Google Maps directly compete with Telstras BigPond Music, Foxtel Digital and Sensis Maps.
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