Cellphone Makers Realize: It's the Software, Stupid

Forget the iPhone: Your next cellphone will probably resemble Nokia's N95. This upstart smartphone features sexy touches like a 5-megapixel camera -- with flash -- and a dual keypad that can slide in multiple directions. But it's the extra internal components, like high-speed internet access, integrated GPS and an open source platform, that make the N95 the target every handset maker will be aiming for this year.

And you thought Apple was the one upending the mobile phone industry.

While Apple's so-called "Jesus phone" will have a significant effect on the handset market in 2008, many phone manufacturers will be looking to distance themselves from Apple by enticing customers with smart offerings in multimedia applications and entertainment features -- not hardware features like touchscreens and megapixels. And there will be no better place to see this than at the annual CTIA Wireless conference running from April 1to April 3 in Las Vegas.

Don't get us wrong, there will be tons of handsets clearly mimicking the iPhone at the show -- even more than at last year's show.

"The first generation of products that were influenced by the iPhone were products that were already scheduled for the market," explains Avi Greengart, a research director at Current Analysis. "But now, we're definitely starting to see phones that are beginning to look at user interface on a touchscreen to provide a different experience."

Greengart cites Sony Ericsson's upcoming Experia X1 as one example of an iPhone-inspired handset. Other iClones are expected from Samsung and LG.

iClones aside, possibly the most hyped item at CTIA won't be a phone or an application or even an innovative piece of software, but an operating system. The Google-backed, open source Android operating system, first unveiled in November 2007, is still under development. Some ambitious manufacturers showed early prototypes of Android phones at the Mobile World Congress in Barcelona this February -- but behind closed doors. Those prototypes were little more than circuit boards sprouting wires, LCD screens and keypads, so with luck, CTIA will feature some slightly more refined Android prototypes.

Carriers next week will also be touting massive amounts of content available for their devices. AT&T has announced full-length television content comprising sports, news and prime time shows. It remains to be seen, though, how AT&T hopes to deploy this media with its slow-as-frozen-molasses EDGE network.

Wishful thinking is one thing, but there are some concrete things we do know will be released at CTIA. To stoke your gadget lust, here are some quick hits on what the major manufacturers will be up to.

Nokia

Despite producing smart, powerful products (hello, N95), Nokia suffers from horrid sales and brand presence within the United States. The rumor mill, however, is rife with conjecture that the handset manufacturer will make an announcement at CTIA introducing a CDMA-enabled device for either Sprint, Verizon or both. A Sprint/Nokia pairing would make sense considering Nokia's top-notch web browsing abilities and Sprint's high-speed data network (the fastest of any carrier).

Sony Ericsson

Sony Ericsson will be heavily hyping its Experia X1. This iClone-like device sports a touchscreen, but it's no wizard of OS. Under its alluring 3-inch VGA screen lies a homely Windows Mobile operating system. Sony Ericsson touts the Experia X1 as a mobile solution for business and entertainment.

Google

We're just as excited as anyone to play with a phone equipped with Android. But if you're expecting a big announcement, then dream on. Greengart says, "I don't think you'll see any specific product announcements. Android phones probably won't be available until the fourth quarter, and I certainly don't expect Android phones to be launched at CTIA."

Motorola

Virtually anything Motorola announces will be overshadowed by the splitting of its cellphone division from the rest of the company. But that hasn't stopped photos of what could be a ROKR E8 music phone from popping up. There are also rumors of a Kodak-engineered 5-megapixel camera phone from Moto.

Samsung and LG

These two companies like to use the shotgun approach to product releases. CTIA will be no exception. "Samsung and LG … typically throw a whole bunch of stuff at the wall to see what sticks. Expect to see more touchscreen devices from both companies," Greengart says.