Written by Tyler Hackbart

Prologue: In the last decade, features in technology have been greatly focused on features of the hardware itself. Any cell phone, laptop, tablet or any device come down to the specs of that device and how it compares to the overall market. That still stands true today, but the market is shifting into a ‘service over hardware’ way of marketing and there is going to be more focus into this way of business for device makers in the next while.

Focusing on Services, Not Hardware

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As we come into a new year of products, devices and services of all things, there is a very high demand for one thing in particular, services are getting very popular. They are the recorded as the easiest market to get into, hardware comes with all types of problems. And writing code, getting it out is a lot easier than to plan a whole product line and getting it manufactured, shipped and distributed in a short time.

Now that service sectors are getting popular, and have been for quite some time, we are also seeing a transition in the sectors that have already been established, we have kinda hit a wall.

Smartphones ten year ago were called cellphones and they had really bad camera, really small screens, very basic functionalities and were bricks. Smartphones now have some of the best chip sets, cameras that are equivalent to a two handed SLR and the highest resolution that you can’t even see pixels on most smartphones on the market. Oh and you can do a lot with smartphones today. Smartphones will never be compared to laptops or desktops, but if you focus on hardware specific we are hitting a lull period. All the technology in the phone, all the components that we couldn’t even imagine a decade ago, are second nature. Which is why technology companies are pushing resources into services versus hardware.

Services allow for more experiences on the device and some features, most of the features that we buy the new device is because of a service that links into hardware. We as consumers thought focus on the service, and most people over look the hardware and instead on the service as the new thing. Services also allow for a more engaging or used device, linking a feature that makes life better is going to be good for that device market. Take example mobile payment, in 2015 was the highest record mobile payment year and its expected to have a drastic increase over the next half a decade. And that hardware has been there for a couple years but the service allows it to grow over time.

Now don’t get me wrong, hardware is still as important to a devices as the services that it provides. Judgment on the service will be directed at the device, dependent on who supplies it. But since there is only so many ways you can introduce a high end camera or the best screen on a phone, companies have to dig deeper than the outside of the phone since we have mastered the components that were once the high lights.

During the transition inside the cellphone market now and how we interact with this device is a lot different than any other device ever created. However we do know that this service direction is a very popular venue and companies with hardware are buying or supplying a new services every launch of a new thing. Let’s see how a transition will change the market, and how much different we will be in another decade.