Touchscreen technology is helping Apple snatch a greater share of the smartphone market. It is also altering the way devices and applications are designed
Once upon a time the microprocessor used to be the centre of the computing universe. Consumers reserved the largest chunk of their PC budgets to buy the fastest chips. But in today’s most popular computing device — the mobile phone — the processor has become a commodity component, lacking both consumer awareness and pricing power.
And taking up its throne is a flashy couple that is increasingly the centrepiece of all smartphone parties — the display and touchscreen. According to Gartner, 362 million touchscreen mobile devices will be sold this year, up nearly 97 percent from last year’s figure of 184 million. And by 2013, close to 60 percent of all mobile devices will sport a touchscreen.
iTouch, iSee, iFeel
Technology behemoths like Microsoft and Nokia that failed to gauge the speed of touchscreen adoption are today paying the price in the form of lost market share. Windows Mobile OS had a 2009 market share of 8.7 percent, down from 11.8 percent the year before. While Nokia’s roughly 40 percent share of the smartphone market seems high, it has been falling from a peak of 50 percent since 2007. In the smartphone-heavy US market, Nokia’s market share is in single digits.
The company that has eaten both Microsoft’s and Nokia’s lunch, is Apple. It realised that the mobile phone was becoming the default gateway for people to experience content — games, movies and the Internet itself. But existing phones with their small screens, cramped keypads and legacy operating systems (OSes) were doing a poor job on this count.
Launched in 2007, the Apple iPhone solved these problems by combining a large, high-resolution glass touchscreen with a button-less user interface.
Of all the parts that make up the iPhone, the touchscreen is the most expensive — around 20 percent of the phone’s manufacturing cost. The phone’s processor meanwhile costs just between 5 and 8 percent. With its latest product, the iPad tablet computer, Apple is betting even more money on touch — the iPad’s touchscreen costs 37 percent of its entire manufacturing cost.
(This story appears in the 21 May, 2010 issue of Forbes India. To visit our Archives, click here.)