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BARCELONA, Spain — If there's one thing mobile executives like to talk about at the annual Mobile World Congress love fest here, it's the vertical disruption mobile technology is causing.
And this year (MWC: Mobile Technology Madness), as in every year, executives have a few key disruptions they highlight. In the past there was a lot of talk around the impact of:
- 2G and 3G migrating to 4G/LTE
- Moving to quad-core processors
- The global penetration of mobile devices in all corners of the planet
- The mobile OS platform wars
- The growing need for mobile money and things like NFC to make shopping and routine payments easier.
This year, in the main halls, the conversation focused on next-wave activities that could cause disruption (or the way I see, better cross-industry integration).
Working together
For instance, interoperability and standards that would help devices, software, apps, and mobile operators talk more effectively to each other came up often. Whether consumers use a phone, a tablet, a TV, a car, a glucose monitor, a solar-powered phone charging station, a housing security system, or a lantern with an embedded SIM card, the data residing on each individual gizmo has to be better integrated and accessible through a common portal, like your favorite smartphone.
This will become increasingly important if the next wave of vertical disruptions come into full force. So where could mobile technology have the most impact in the coming years? In your car, in your home, and in your healthcare, Rajeev Chand, managing director and head of research for Rutberg & Co. said during the week in a keynote.
Some of this is already playing out, and will scale even more in the coming years, he said.
Take, for instance, the car. Things like GPS and OnStar navigation tools have already changed driving. But what if your car operated more like a smartphone and could feed up all sorts of other info?
carmaker will build 4G LTE connectivity into vehicles as early as next year.
Out for a spin
General Motors (NYSE:GM) is going to find out soon enough how consumers will interact with and react to such technology.
Vice chairman Steve Girsky told MWC attendees that the carmaker will start building 4G LTE connectivity into their vehicles as early as next year, with every brand eventually having that feature from GMC to Chevy to Opel.
Read that again : GM is embedding WiFi connectivity into its cars. It won't be based on your phone or external — it will run LTE on its own, making your auto one big hotspot. AT&T in the US will be the first partner helping to bringing this to market.
Said Girsky:
Wireless technology has played an important role in automotive advances in recent years, helping to move people more efficiently, and more safely. Up till now, the automotive industry has focused largely on delivering entertainment, communications and safety capabilities within the vehicle, and on enabling many of the features that we love on our smartphones.
Our vision is to bring the customer's digital life into the car, and bring the car into the customer's digital life. To do so requires a new way of thinking in the automotive industry.
Mobile health was a big theme throughout many sessions at the conference, and Nancy Brown, CEO of the American Heart Association, had a spot on the keynote speakers' list this year. With chronic diseases, such as heart disease and diabetes, on the rise globally, mobile technology offers appealing ways to educate people, monitor treatments, connect healthcare providers, and reduce costs.
In fact, she said mobile healthcare was “the essential intersection between healthcare and technology.”
Internet of “Everything”
Of course, too, there is the “Internet of Everything,” as Paul Jacobs, chairman and chief executive officer of Qualcomm Inc. (NASDAQ:QCOM), said. He was referring basically to everything else touching the life of the average smartphone user and how devices interact with information coming from multiple points.
“It's like using your phone to stream interactive information coming from your home automation system, your heating system or your car,” he said.
“The best way to think of this is a vision we have for the digital sixth sense where you will augment your five senses with a wireless sixth sense,” he said. “It's all part of this Internet not of Things, but of Everything.”
Qualcomm's solution for bringing together this “Internet of Everything” came in the form of a press announcement stating that its subsidiary, Qualcomm Innovation Center Inc., will extend the AllJoyn software development project with new core interoperable services to enable richer experiences for consumers. These new services will be available on devices with different operating systems and from different vendors, the company said.
Where do you think mobile's next disruption will come from?
Jennifer, thanks for a great post.
Next disruption? That will come not from the mobile device designers themselves but from software and services, in my humble opinion.
The cost of these devices is falling fast (thank you Moore's Law!).
As for functionality? Multiple radios? (Check) Sensors? (Check) HD screens? (Check) Interface design? (Check).
One near term, not-quite-disruption will be more aware mobile devices that react to situations (phone been sitting in your pocket for 3 minutes? No pocket dialing).
The real problem is that the vast majority of existing internet content is not mobile-friendly.
I don't know how the disruption takes place, but I think chasing more bandwidth or lower cost runs its course from a business standpoint.
One key factor – infrastructure to drive the mobile connectivity would determine this. The next level would likely play a major role and determine it, a 3D integrated circuit – would provide more bandwidth as up to few terabytes, as well power reduction. This would help service providers in telecommunication industry, data center and value adding service in mobile sector.
Wale, do you think providers are ready to price that additional bandwidth for profitability? People expect to pay for mobile connectivity, but it seems to me it's unknown whether we'll pay for excellent connectivity (at least in the U.S. our situation as users is “just good enough” right now).
@Brian thanks for the question. I think it has been a debatable discourse at different forums all over the world, internet principle or Network Neutrality per say.
Net neutrality is a principle whereby service providers and/or goverments treat data on internet fairly and equally so as to devoid of any bias or charges. A year or 2 that would probably become a mote debate. Now, more service providers are emerging as more mobile users joining the internet.
1) Telecom service providers
2) Content providers – Google, Facebook, and others in software applications for mobile devices.
3) Data center/cloud providers
4) Mobile switching aggregators
If all are providing top quality services consumers would be alright. But, I think the question should be would the charges not increase as more traffic increase with relative to pressure on infrastructure?
Auto industry needs due delligence before introduction of this disrruptive technology. Road safety and risk analysis needs to be conducted before introduction of this technology. Insurance provider and law maker needs to study this in depth. This also can have big legal liability of getting sued.
I dont think too many regulatory bodies could jeorpadise this development as vehicles have more ECUs and infortainment technology integration. Already, ECU has control body managing the design of software for automotive industry, the body's obejctive is ensuring high level involvement of safety in software design.
And i think, a consortium of Mercedes Benz, Volvo and other has for wireless technology for auto sector. I trust this is a stricter regulations to adhere to by the technologists operating in auto space.
@Suasan: Please wait for Apple TV and Apple wrist watch. They will be cool products.
Wozniak's concern about the Apple's products no longer being cool is justified as today there are many phones with similar looks and features. The uniqueness of its products is what is lost. Also it is worth mentioning that iPhone 5 doesn't have that wow factor thereby Apple's reputation for innovation is going down.
@ _hm
True. These products can revive the reputation of Apple for being cool. However, we must remember that if Apple is innovating in mobile TV etc, so are others.
_hm,
Don't worry, I am looking forward to seeing Apple's new products, especially the iWatch.
-Susan
Waqas,
“The uniqueness of its products is what is lost.”
Uniqueness is the key word here. When a product becomes one of many the unique cool factor is vanished. Apple can bring this back by adding unique features to existing products, or even better creating a one of its kind product again.
All Apple products excel in quality. This is something no one can deny.
-Susan
@ _hm
Apple makes cool products from time to time and costly ones too
@Susan you close with ” This may be the time when the word 'cool' goes through another revision and adapts to the times. In what terms would you revise it? What is entailed by adaption here?
Good points, indeed! But Apple's strength has always been in defining what will make consumers cool in the coming years.
That has yet to be defined, I think. Is it the next era of TV?
If the next big thing is the Internet of Things, Apple's going to have a really tough time there because it's such a diverse market with millions of applications.
Not if everyone is bying Apple products. Apple just needs to re-market COOL in Apples favor!!!!!!!!
Apple products are based on industry standard quality norms; they are no better 'quality' than a Sony or Lenovo, etc. What (in my experience) had distinguished Apple was the superb service IF one had a problem. They 'allow' consumers to 'choose' if they want to be treated 'better' by paying more than others who do not need that 'treatment'. You buy AppleCare. Another source of revenue which can justify better service. It is essentially an insurance against poor quality that the customer PAYS additional for.
Lately I have noticed a fall even in this service, even though one has already PAID for it.
Apple may be losing its cool quality image, maybe already has lost it.
Apple watch: A person carrying a grandfather clock is knoocked over by a drunk. He yells at the drunk: What. Are you blind. Watch where you are going. The drunk: I get it. But will you start wearing a normal size watch rather than this huge thing.
This may well be a methor for the Apple watch. Dont hold your breath.
Apple TV: Facebook just let us know that they are losing the 15-25yr olds. Apple will also soon start losing them: they have tolerated the itunes 'lock', but are now getting to the point of resistance. The same resitance will apply to Apple TV. When I buy or watch something I prefer things where the 'producer' gets most of the payback. With the 30ish% cut that Apple takes, I will go there only as the absolute LAST resort.
Perhaps Woz is just trying to give Apple's innovators a kick in the pants since Steve is no longer dong it. Cool factor isn't easlly earned and doesn't instantly vanish. What Wall St (the capital of fear and greed) thinks often has zip to do with a company's true value or potential. Wall St. just keeps some kind of wierd scorecard.
If Apple's innovators maintain their passion for what's next without sweating their stock price and just go with their intuitive, colllective gut feelings, they'll continue proving what they believe people will need in further insanely great products. They're likely very aware The Ghost of Jobs is watching, far less Wall St. or the media.
For more insight into what makes Apple and other well-led organizations tick, go to: http://on.ted.com/p4O8
PS: To my point above re. Wall Street's off-base perspective on Apple's value, this just in from today's SF Chronicle: Oliver Chen , an analyst at Citigroup , on the potential market for a much-rumored Apple iWatch. Wristwatches will generate more than $60 billion in worldwide sales this year, with gross margins of 60 percent, Chen estimates.
@ Brian
I personally feel mobile TV has a limited scope as it is unlikely that people carry both a mobile tv and a smartphone simultaneously. Let's see how Apple and others make way for this product.
@ Susan
No doubt about the quality and that is what keeps Apple among the reputed vendors for mobile devices. But there is a big population willing to compromise on quality against a lower price. All they need are the features that are must have.
Surely Apple can sustain its revenue growth by bringing in some cool features to its devices. The ability to surprise is something which shouldn't get lost and it has become difficult to surprise people because they are always expecting something beyond their normal imagination.
Waqas,
“The ability to surprise is something which shouldn't get lost and it has become difficult to surprise people because they are always expecting something beyond their normal imagination.”
Great point. That is exactly what is happening. Like a kid, always expecting beyond what it's possible, and will never be satisfied with any new toy, consumers have come to a point that they will not be satisfied with anything no matter what new feautures Apple would add to its devices. It's kind of sad if you come to think about it. 🙁
The whole same thing can kill any motivation for invention and creativity. Why to put an effort in something that it's not going to be appreciated anyway?
-Susan
“Apple products are quality products that respond to consumers' needs and expectations.” most of these consumers simply don't use their brain, or they have too much money to spend!
iPhone and iPad are not environmental friendly to begin with. They force consumers to buy the proprietary dongle/adapter instead of using the universally standard microUSB connector. When almost everybody agree to adopt the microUSB connector in Feb2009, Apple refused and kept claiming the b.s. that the proprietary 30pin (and now 9-pin) connector can do more. More to meet the consumers' need? No. More with profit taking at Apple? Yes. Apple refused to offer the micro-SD slot. Instead, Apple charges consumers US$100 for 16GByte which costs less than US$10 on sales at Fry's Electronics or Amazon, … Apple refused to adopt NFC early but was willing to push out the nuisance Map Apps. This doesn't meet consumers' need and expectation, right? Apple offers the smallish 3.5″ screen (4:3 aspect ratio) and only agreed to the slightly larger 4″ (more of 16:9). This strains the eyes of consumers, especially the old and the young. In terms of HW spec, iPhone5 is so behind the competition in many areas, yet consumers was deceived to feel that they are owning the best featured smartphone. How ironic? Back to the screen size, when iPhone is used to visit websites, it cannot display Flash animation and choose to display static image. Most criminal is: when iPad1/2/3/4 is used to display movie at 16:9 or wider format, iPad will cut away the left and right portion of the display in order to reduce the black stip at the upper and bottom edges of the display. Because consumers rarely put an iPad4 and a good Android tablet (e.g. Nexus 10) together, they do not know what they are missing. However, I would say that Apple cheats its consumers by cutting away left and right of the display. Being Apple, Apple happily keeps making a lot of money despite of offering devices with the least user-friendly features and , …
True Susan. The only motivation left for Apple and its peers to innovate is sustaining the revenue of their companies. Having said that, money can never be as good a motivator as appreciation to one who sweats to develop a unique product.
Waqas,
I kept on thinking about the total disatisfaction that I believe is the problem we are facing today. The minute most consumers have a new device in their hands the first thing they do it trying to find what's missing, what's not working asthey expected, what's wrong with the them. Why are we always discussing what's wrong with the products, or the manufacturers, and not what's good about them?
Why are we wondering if Apple is losing its cool, instead of higlighting all the cool things Apple has? I need to think more about this.
“. . . money can never be as good a motivator as appreciation to one who sweats to develop a unique product.”
Exactly. And here, you have found one good reason that may be part of the whole circle. Good thinking, Waqas. 🙂
-Susan
@ Susan
Why are we always discussing what's wrong with the products, or the manufacturers, and not what's good about them?Why are we wondering if Apple is losing its cool, instead of higlighting all the cool things Apple has? I need to think more about this.
I feel there is a conflict between our words and action. Despite we highlight negatives of Apple and its devices for being quite standard (not cool), many of us our active users of iPhone and have no intention of dropping it. Our choice of not to let it go should keep Apple's sales team content.
Despite we highlight negatives of Apple and its devices for being quite standard (not cool), many of us our active users of iPhone and have no intention of dropping it.
@WaqasAltaf, its not the question of dropping it. Reality is Apple sales have definitely slowed down after Samsung released its Galaxy and Note series and this trend might continue because Samsung is planning to released smartphones which will have flexible display.
Why are we always discussing what's wrong with the products, or the manufacturers, and not what's good about them?
@Susan, I agree with your opinion. I think one reason for this behavoiur is because there is little to differntiate between two products. Android devices released by Samsung/LG/HTC are as good as iPhones. So consumers tend to see what feature is missing in the product rather than what features are present.
I personally feel mobile TV has a limited scope as it is unlikely that people carry both a mobile tv and a smartphone simultaneously
@Waqas, true. I think already there are many apps available in the market using which users can watch TV on their existing smartphones. I wonder what additional features mobile TV will have compared to the smartphone TV. I think smartphone which can project the image on bigger screen will become popular than mobile TV.
@ tirlapur
“Reality is Apple sales have definitely slowed down after Samsung released its Galaxy and Note series and this trend might continue because Samsung is planning to released smartphones which will have flexible display.”
You have a valid point. Samsung is beginning to be known as cool for its devices because of its elegant design and display features. Secondly, its cost is also below that of its Apple counterparts which makes it a worth-considering option when choosing between buying iPhone or Samsung device such as galaxy note.