The life of the mobile phone has changed a lot since its inception. What started as a very functional, utility product that helped people work and communicate with one another has become much more than just a device for talking. It’s become our camera, calendar, photo album, TV, wallet and much more. If you had a fire in your home and you had to decide between your wallet or your phone, most people would rescue their phone—without hesitation—first. To say we’ve become dependent on our mobile devices these days is an understatement.

When we look at the existing mobile category, it’s becoming more competitive as the parts used to build our phones have become universally available to all manufacturers. Sometimes it’s difficult to see the difference between the Samsung 10 or the iphone X. With thinner devices, curved edges and vibrant colors, many of the devices are starting to look more and more the same. And many of them are not only coming out around the same time, but also releasing at similar price points.

App Ecosystem to Boost Sales

Currently, major hardware players try to find unique ways to differentiate themselves, knowing that in many cases the success of the devices relies on the app ecosystem to boost their value. During many of the presentations of newly released phones, only a select group of apps are showcased for the world to see the power of the new phones. There’s an understanding that the phones are only as good as the apps they offer. That’s why it’s so important for devices to find startups and apps to work with, in order to showcase the latest new features of the phone to demonstrate their strengths.

The app ecosystem has to be healthy, filled with a large collection of top apps for users to download because when it comes to purchasing a phone—most people decide based on how well the phone will improve their social status. Yes, we’re social status-seeking monkeys. Buyers, choosing which phone to buy, are likely to be thinking about which phone will create the best content for the Snapchat, TikTok or Instagram while debating one phone over the other.

The camera, one of the most popular features of the phone, and the apps related to the camera, have equal importance in phone purchasing decision-making.

Since so many of today’s phones appear similar on the outside, a new competitive advantage for manufacturers will not only come from the healthy ecosystem of apps but the new era of services they offer.

Era of Services

The services that devices offer on top of the devices can make all the difference for buyers who are looking for a reason to choose one manufacturer over another. We’ve now turned a corner in technology and devices, adding a new driving force towards purchasing a device, including the services it offers, which will continue to speed up the growth and competition in the device category. In the coming years, we will start to see not only an expansion of products beyond the phone but we’ll see many more services layered on top of hardware devices to boost sales and win the majority of the market.

The race for content-like services has begun as manufacturers (and even large platforms like AirBnB) look for new ways to capture audiences and win the market.

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