Apple set the tech world buzzing recently when it dropped hints about its next wave of products.
Chief Executive Tim Cook, speaking at Apple’s annual general meeting, promised that new products were in development. The company spent $32 Billion on R&D last year.
Cook was cagey about specifics. But tech watchers reckon the next generation of Apple products will involve wearable technology and maybe even TVs.
Apple has long been a leading innovator with its iPhone, but to get a sense of what’s coming next in smartphones it’s worth looking at their competitors.
The smartphones enroute to oust the iPhone
Google for instance announced that its long-awaited smartphone should come on to the market next year. It should retail for around US$50.
While that price may seem low, if you look at what’s happening in the smartphone world at the moment it’s not all that surprising.
The biggest growth is at the affordable end of the market, as companies like HTC, Nokia and Samsung tap emerging economies in Asia and Africa.
And it makes a load of sense. After all, there are 2.5 billion people living in just China and India- that’s 36% of the world’s population.
Analysts had been expecting Apple to release a more affordable product last year.
Instead we got the iPhone 5C, which was cheaper than their premium phone, but not by much.
Apple is losing market share, but doesn’t seem that bothered. It’s focussing on profitability instead, which at the moment is paying off.
Where to from here for the iPhone – and smartphone innovation in general?
When it does release its new iPhone, Apple’s efforts will be heavily scrutinised.
While competition in the affordable smart phone market is growing, so too is innovation, and the tech giant must keep up to date in order to remain dominant.
Google’s phone for instance, will be modular in design. That means customers can easily customise their device by putting it together in pieces like Lego!
And in a sign that consumers are becoming more concerned about privacy, Boeing has launched a destructible phone. In the US a new encrypted device called Blackphone is taking off.
And while Apple’s iPhone hasn’t changed all that much in size, the average screen size of smartphones continues to gallop ahead as people want bigger screens in order to watch more video content.
Apple may be wealthier than many small countries, but it will be left behind unless it matches the innovation of its competitors.
Callum Denness
Contributing Editor, Money Morning
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