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October 26, 2007, 9:04 am

Phonemakers roll out the touchscreens

By Michal Lev-Ram

Back when the iPhone launched, phonemakers like Motorola were playing it cool, saying they weren’t all that excited about the prospects of touchscreen devices in the United States.

“Historically, carriers and subscribers have been resistant to touchscreens,” Rob Shaddock, chief technology officer of Motorola’s (MOT) mobile devices unit, told CNNMoney.com last March.

Fast forward a few months, and touchscreen phones by LG, HTC and Nokia (NOK) are popping up all over the place. As for Motorola? The Schaumburg, Ill.-based company recently announced it would acquire a 50 percent share in UIQ, which develops mobile operating systems and specializes in touchscreen phones.

“The button-centric experience is transitioning into a touch-centric experience,” says John Wang, chief marketing officer of Taiwan-based HTC, whose keyboard-less Touch phone will be available through Sprint early next month. “At some point, touchphones will become a major category of devices.”

Analysts agree that the range and popularity of touchscreen phones will grow: According to ABI Research, over 100 million handsets with touchscreens will be shipped in 2008. By 2012, that number is expected to reach 500 million.

Next month, Verizon Wireless (VZ) plans to launch the Voyager and the Venus – no, these aren’t code names for NASA projects, they’re phones – both made by LG. Samsung, meanwhile, is expected to soon roll out its F700. By including both a touchscreen and a pull-out QWERTY keyboard in the phone, Samsung hopes to solve one problem many users have with all-touchscreen devices — the lack of tactile feedback.

But almost all touchscreens do at least one thing right: They make it faster and more intuitive to access applications, something that normally takes many clicks and scrolls on a traditional phone.

According to HTC’s Wang, the inspiration for the Touch was not the iPhone (the company says it started working on its all-touchscreen device more than two years ago), but a baby.

“A baby doesn’t look for a small ‘X’ at the top right corner when she’s done playing with something,” says Wang. “We only do that because we’ve been brainwashed by Microsoft to do so.”

Ironically, the Touch runs on Windows Mobile, but the company has simplified the user interface with touchscreen technology. Controls on the Touch mimic human movement, much like the iPhone. Done with an application? Just push it away with a flick of your finger, much like a baby would discard a toy once she’s done playing with it.

More competition for the iPhone will benefit consumers, but Apple (AAPL) might not find the situation so touching.

i’ve had a touch screen on my phone for at least 18 months ….in the form of a UTStarcomm connected PDA , runs on windows mobile , got all the multimedia bling and mobile office that looks soooo much like its big brother that i even prefer it to a full blown laptop because “i’m-about-to-pack-the-laptop-because-i’m-going-2-floors-up” or “laptop-is-just-too-cumbersome-for-a-10min-meeting-in-the-hall” , apple is more about SOOOO GOOD LOOKING then “man this works for me” for me steve jobs is just the blond of IT

Posted By eric s Toronto : October 29, 2007 10:05 am

I still don’t understand what Apple innovated with this great iPhone that is way behind in sales targets, doing so bad they had to drop the price by $200 after what 2 months? Its a iPod & they added internet, a phone, and a touch screen, wow. It doesn’t even come across half the things a blackberry or a real intuitive device can do.

Posted By None of your business, NY NY : October 28, 2007 8:04 pm

iPhone is nothing to brag about. Business still runs on blackberry and the iPhone doesn’t even support blackberry mail. iPhone isn’t a phone it’s just an iPod that comes with a phone and internet. Think about it the iPod touch is essentially the iPhone without a phone. Why? Becuase the iPhone is an iPod with the phone added, took the iPod touch now and added a phone. They had to drop their price 200 because things are so great? Haha no because sales are going horrible and they need to regain their pace and are hoping to do so during the holiday season. If the iPhone was so great it would have a major market share, not less than 2%, and if Apple was a great company, their new Operating System they just released wouldn’t have done so horrible as it is doing in terms of sales. Only good thing about Apple is a high market capital & share price. See Apple came up with an iPod and just keep dragging it out with add on’s not innovation to try to continue to go through the sales cycle. It addes colors, sizes, memory, a phone to it, some internet, but no more innovation.

Posted By Al Sharpton XVIIIIIVIIIVII, Austin, San Deigo : October 28, 2007 8:00 pm

come on, without the introduction of iphone, will other carriers or phone markers work so hard like this? What? The idea not come from iphone? Please don’t lie, we are not babies.

Posted By kirk Honolulu hawaii : October 26, 2007 9:26 pm

I think everyone is missing the real boat…. I’ll spell it out for all of you… It is a “M.U.L.T.I.-T.O.U.C.H.” touch screen with over 300 patents… Because it registers multiple touches at once, it allows for gesture programming, which apple has utilized beautifully. No one else has a screen like this, nor will they ever have a screen like this… therefore, they cannot compete against the iPhone… They have already lost… The real question is who the real winners are? Apple.. or the consumers who just got handed the coolest tech gadget to hit the industry since the mouse and the GUI. Did I mention is it running OS X… and that makes it the first mass produced wearable computer… That’s one small step for Apple, and a giant leap for mankind. I just wish it wasn’t AT&T riding the coat tails to victory.

Posted By Paul Eusey, Sacramento, Ca : October 26, 2007 7:22 pm

The problem is the US market, not the cell phone market.
US consumers are cheap and don’t like to pay a ton for their phones.
Europe, Japan and Korea have had great touch screen phones for several years.
South Korea still has some of the best cell phones on the market. They are just not compatible with most US networks and the manufacturers have not made English versions of them.

To SoCal Tommy… HTC released the Prada touch screen phone 6 months before Apple released the iPhone.
It wasn’t released in the US due to the price. They knew US consumers wouldn’t buy it.
US consumers still want cheap phones.
The iPhone is a neat toy, but it still lacks in many areas that a Blackberry or Treo are capable of providing.

Posted By RJ, Phoenix : October 26, 2007 6:29 pm

Jonathan: hate to rain on your parade, but most of the world is past your simple view of the “mobile communications device” as a simple phone (without getting about how it’s already a complex display radio device that just emulates a phone).

People only go crazy over the iPhone (in the USA) because with Apple’s unique UI, it offers a minor subset of features already available to the rest of the world albeit at slower speeds.

With pressure from Google and Yahoo pushing mobile applications that bring mobile, visual, direction/directory search, among other add ons such as GPS , to the virginal USA, it’s only the tip of the iceberg.

Looking to current Japanese phones is a good indicator of what the USA might get in the next 5 years, such as QR code information using the phone camera and credit cards built into the phones for swiping are just starters.

Posted By NuShrike, Irvine, CA : October 26, 2007 3:26 pm

As the one poster pointed out stripping the HTC Touch of Wifi is yet one more reason Sprint is in Trouble. They just got rid of their CEO Gary Forsee for all his blunders. Come On Guys, remember the old addage. Compare Apples to Apples, not Apples to whatever the people in charge of Sprint were thinking with this obvious poorly thoughtout idea.

Posted By Will, Omaha, NE : October 26, 2007 1:50 pm

I do like the intuitiveness of the iPhone, but for my needs, my O2 XDA mini still serves me well. The iPhone does not have Excel, PowerPoint, Word, nor does it link to my Lotus Notes to give me my appointments or my Lotus e-mail. To top it off, the iPhone does not give me GPS that my O2 XDA mini provides with it’s incorporation of TomTom Navigation. Furthermore, the iPhone does not have expandable memory like my O2, which can swap out 8 GB of SD cards.

Posted By Daniel, San Jose CA : October 26, 2007 1:44 pm

They already took away the reason I would purchase this compared to the Iphone, WIFI!
The Sprint Version has WIFI stripped out. WHY?????
If you want to compete don’t remove some of the best innovations from the product. What is Sprint Thinking?

Posted By Lubbock, TX : October 26, 2007 1:41 pm

I guess when the critics were saying it would flop the price is too high and there not in the cell phone business. They were dead wrong they proved they can make a good margin and catapolt AT&T to the top of cell phone companys.

Posted By Tim Lakewood Ohio : October 26, 2007 1:41 pm

Right, and in typical Apple fashion lets make sure there’s only one channel of distribution for a well made product.

Posted By Don’twantAT-T : October 26, 2007 1:06 pm

I hate to rain on the parade here, but most cellphone users simply want to make calls and in many cases text.

Posted By Jonathan Los Angeles CA : October 26, 2007 1:01 pm

I don’t think the traditional phone makers have a thing to worrry about. The Iphone is a niche product. The VAST majority of cell phone users don’t play in the price range the Iphone is. Additionally to compare the MP3 player market to the cell phone manufacturer market is like night and day. The IPhone is great but it will not dominate like the ipod.

Posted By Steve, Chicago, il : October 26, 2007 12:51 pm

With the iPhone being the “first to market”, they have a huge advantage. I would say that the iphone will stay in the lead for at least the next couple years.

Posted By FrugalTrader, Canada : October 26, 2007 12:48 pm

HTC say’s they’ve been working on the Touch screen for 2 years?? What were they waiting for?? Someone else to actually “do” something? I’ll give him the benefit of the doubt. So just maybe the phone companies didn’t think much of the “touch” screen and didn’t want to disrupt their “in place” phone providers like Nokia, LG, etc. Again, whether you like Apple or not, they have definately “stirred the pot” of consumer desirable tech innovation.

Posted By SoCal Tommy : October 26, 2007 12:36 pm

I am a Windows Mobile to iPhone convert. Trust me, I did it because I got a free iPhone. And I am a convert now ! The iPhone now sets the bar so high, any other phone has leaps and bounds to catch up.

iPhone is not just about touch. It is the usability. Simple things that makes life so much easier.

Posted By Raja, Nashua, NH : October 26, 2007 11:44 am

Palm Treo should be given credit here as those were the one of first phones out n the market with Touchscreen. iPhone popularized touchscreen phones and made it look beautiful compared to a plain Jane ‘Treo’.
(http://thebizshow.wordpress.com)

Posted By Bizness Guru, Philadelphia, PA : October 26, 2007 11:39 am

Too bad this thing ugly. The silver border around the iPhone is ugly too. Convert the iPod touch into a phone and you’ll have a winner.

Posted By Anonymous, Somewhereville, NW : October 26, 2007 10:57 am

Whether a phone is touch screen or not really isn’t the point. The iPhone wasn’t even the first touchscreen phone. Most uesrs (minus Mac heads) will by a smart phone that fits there needs not one that look pretty and has a touchscreen.

P.S. This is by no means a knock on the iPhone. Just the plan truth.

Posted By James, Troy MI : October 26, 2007 10:53 am

Apple’s competitive advantage ISN’T the touch screen. It is the OS that the interface is built on. And no company in the world is close to being able to compete on that basis.

Posted By Jon, Rochester, MN : October 26, 2007 10:25 am

Isn’t this the HG Touch? There has been so much talk since the day the Iphone was launched by phone owners, press, and companies… just admit it— Iphone is the best phone on the market.

I have both an Iphone and a blackberry 8800— and these days, the Iphone serves as the most robust tool in my pocket. When I go on vacation and don’t need to do work but want to be connected to the internet— Iphone connects via wifi and I can see webpages the way that they are on a computer- not a cell phone version or a blackberry version.

If I want to listen to my music- I can, on my iphone. If I want to watch movies while my friend goes for a 3 hour drive to get to the villa- I CAN. If want to know the weather, I can look at where I am going and see the 5 day outlook. If I need to make a call— I can on my iphone.

The Iphone bridges a major gap that existed for the normal consumer- if you need only email- go for the blackberry-if you want a visual experience that is basically a media based phone, the iphone is the one for you.

Posted By John, Gilbert AZ : October 26, 2007 10:19 am

I found this a very interesting and informative article. I imagine LG, Nokia, Motorola, etc., can’t just lay down and die, but with the unanimous lack of success competitors have encountered unseating iPods from their throne, I have to wonder if the cell handset powers that be see some writing on the wall.

Posted By jeremy elliott, austin, texas : October 26, 2007 10:11 am

I don’t think Apple’s worried.

What’s not to like about being the best touch phone, by far, in a sea of wanna be’s?

The wanna be’s will lend further validation to Apple’s innovation.

Posted By Peter Kropf, Cville, VA : October 26, 2007 9:55 am
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