Executive Summary
This report was commissioned to identify and analyze the technological
innovations that have made a huge impact on the smartphone industry. The
research highlights the fact that over the period of 23 years, smartphones have
been transformed tremendously. When comparing the World's first
smartphone, IBM Simon, to iPhone 6plus and Galaxy 5s, the most important technological
reformation is the 3D touchscreen system and the addition of high definition
cameras. Other fascinating improvements in smartphones are increased battery
life and Internet speed, and weight reduction. The IBM Simon weighed half
a kg, had a battery life of 1 hour, and poor Internet connection. However,
Today’s smartphones have advanced by at least 10 times from its 1st
version. Through innovation, companies are now able to provide extremely light
weighted smartphones, battery life of 48 hours, Wi-Fi
connection, high speed Internet, and apps. Furthermore, the two
leading smartphone firms, Apple Inc. and Samsung successfully retail these
innovated technologies through their smartphones. Additionally, the report
provides a detailed technical and business analysis, which includes the uses
and how the innovations provide competitive advantage to smartphone firms. The report
concludes that new innovations are an essential part of the industry’s growth.
It is recommended that the industry continue implementing and enhancing
technological ideas to provide better products in future.
Overview of Smartphone Industry
Smartphones were first invented as a combination of cell phone and
computer. A smartphone had the ability to send and receive e-mails, surf the Internet,
and make phone calls. However, with new innovations, smartphones now are
capable of performing tasks that even a computer cannot do. The
Smartphones industry consists of many cellphones companies. The largest
cellphone companies in the Smartphones Industry are Apple Inc. and Samsung.
Here is a brief history of each company and their smartphones.
Apple Inc.
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Apple's smartphone journey |
- An American multinational technology company
- On June 29, 2007, in US, Apple Inc. introduced its first smartphone, the iPhone.
- Apple Inc. introduced the iPhone to the rest of the World in 2008.
- The iPhone stood out from its competitors because of its touch screen, advanced features, and minimal hardware
Samsung

- A Korean cellphone brand, founded in 1983.
- Introduced its first smartphone on April 27, 2007, called the Samsung Galaxy.
- Features of Samsung Galaxy included 3.2-inch touchscreen, auto focus camera with power LED flash, and a digital compass.
Smartphone Industry's Key Issues and Challenges
The smartphones industry has become very competitive over the past few
years. This is because the products of smartphone brands are not so far
apart from each other in features, quality and retail prices. With a
variety of smartphones, consumers have many choices to buy from. The two
largest smartphone firms Apple Inc. and Samsung are the biggest competitors. According
to statistics, Samsung is continuously leading as the largest smartphone
shareholder of 25.2%, but despite the fact that Apple Inc. has only 11.9% in
2014, it is still taking about 90% of profit in the industry. Both, Apple and
Samsung are working hard to beat each other in making higher revenues.
Rising Manufacturing Cost
Despite the fact that the smartphone industries are making huge profit,
the manufacturing costs have also significantly increased. Statistics prove that the S5 has a bill of
materials valued at roughly $256, including manufacturing costs, while Apple’s
flagship iPhone 5S cost an estimated $207 to build. An increase in manufacturing
costs has caused the retail prices of smartphones to increase, which
increases the possibility of declining sales.


Business Analysis

According to the five-force model, smartphone's leading firms, Apple Inc. and Samsung's buyer power is very strong. Samsung's buyer power is strong because people have strong customer loyalties to these brands. Also, Apple Inc. 's iCloud is an effective tool in keeping them customers. This tool allows consumers to easily connect their smartphone, MacBook, and iPads. Both firms are effectively manufacturing their products, this proves a good relationship with their suppliers. As for the threat, these firms are the biggest threats to each other due to the intense competition between them. The potential entrants for the firms products would be young people from ages 14-25. This is because this age group is more drawn towards new technology and the products offer a huge variety of apps.
Conclusion
The major technological advances in smartphones
have affected the industry in many ways. The competition level between firms
have increased, many companies have followed the trend of building touchscreen phones
after seeing its successful contribution to Apple and Samsung brand. Also, the technological
changes have increased consumer demand; the product advancement has attracted
many new consumers. The emerging technologies would make a significant
difference in future. The new technologies, such as the touchscreen and camera would be reformed again as new ways of implanting ideas are discovered. The emerging technologies would make a significant difference in future.After being introduced to the iWatch as a smartphone device, we can expect something similar as the images provided. The future smartphones could be transformed in wrist bands, rings, or having images popping out of screens.
Conclusion

Refference
http://www.telegraph.co.uk/technology/mobile-phones/11037661/Smartphone-at-20-IBM-Simon-to-iPhone-6.html
http://www.businessdictionary.com/definition/innovation.html
http://www.forbes.com/sites/jaymcgregor/2014/05/02/smartphone-startups-the-innovators-challenging-samsung-and-apple/
http://www.businessinsider.com/the-state-of-the-smartphone-industry-2014-9
http://www.forbes.com/sites/greatspeculations/2014/05/29/samsungs-smartphone-business-faces-challenges-despite-strong-sales-growth/
http://www.cnet.com/news/why-you-should-still-consider-the-galaxy-s3-over-the-galaxy-s4/
https://www.youtube.com/watch?v=i1ukzpMckUM
http://www.cnet.com/news/smartphone-future-tech-where-can-we-possibly-go-from-here/