While hiking on Lantau Island in Hong Kong, I was surrounded by mother nature and scenic views. I wanted to capture what I was seeing with my own eyes, but all I had was my phone. Utilizing the camera on the phone, and some free software, I was able to take some decent photos. This got me thinking, if I’m able to do this now, what other industries or companies will the smart phone disrupt next?
Music First: When Apple decided to come out with the iPhone, analysts questioned this strategy, as it would cannibalize their iPod business, which was driving revenue at the time. I completely agree, this would definitely affect Apple’s existing business( and it did ). With that said, if Apple didn’t do it, someone else would have. Now Apple controls the device that we are all attached to, and as its functionality grows, other companies will continue to be affected.
Pictures Second: I no longer carry my Canon Powershot camera with me. I believe the point and shoot cameras are devices of the past. While camera technology will continue to be superior to the phone, companies don’t realize that it doesn’t have to be in order for a transition to take place. Who needs 20 megapixel cameras when we can get 10 megapixels on our phone? I believe phones have come far enough for an adoption to take place, even while they continue to improve.
Looking Ahead - Hand-held Gaming: I believe Sony realizes that their PSP business could suffer as a result of smart phone development. Phones are on the verge of being able to handle complex gaming, and gaming companies are starting to take notice. Consumers will be able to play games against their friends with ease, altering the existing business model. Some hurdles remain, such as controls, etc, but are not unsolvable.
Looking Ahead - Wallet Replacement: Almost every item in my wallet will soon be integrated with my phone. Why should I carry around multiple credit cards, a metrocard, or cash? After looking at this more carefully, this is definitely where we are going, however I don’t believe any company/industry suffers as a result. American Express, Visa, and MasterCard will likely benefit as consumers adopt the technology, allowing for faster and efficient transactions simply holding up their phones for a few seconds. Starbucks has already launched a program to allow this.
Smartphones only make up 30% of the US mobile phone market. The adoption rate is expected to increase over the next few years before leveling off. Companies such as Canon, Nikon, Sony, and Nintendo should be extremely paranoid by this and should question whether some of their core products are facing gradual extinction.
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