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Innovation: Apple's iPhone to Get More Competition

 
By Donna Fuscaldo
FOXBusiness
     

    New York--Apple (AAPL) may have wowed with its iPhone, but it doesn’t have a lock on the market.

    Consumers should expect a whole slew of iPhone-type cell phones in the coming months from some of the leading handset makers. While they won’t be exact replicas of the iPhone, they are expected to have touch-screen capabilities, an easy to use interface and the ability to surf the Internet. Next week, for instance, the LG Voyager hits Verizon (VZ) stores.

    “The LG model Voyager is a touch-screen device that has two touch screens,’’ said Lawrence Harris, a telecommunications analyst at Oppenheimer. “Well see additional touch-screen models in increasing numbers.” 

    Touch-screen technology is clearly driving the adoption of the iPhone and resulting in copycats, but it’s not the only reason more iPhone-type devices will flood the marketplace. Oppenheimer’s Harris said the opportunity to easily surf the Web with these phones will also play an important part in market adoption.

    “What’s driving the success of many smart phone models is the ability to access the Internet with a regular browser as well as a good size screen,’’ said Harris.

    In the past, accessing the Web via a cell phone was a frustrating experience, since you were forced to view the Web on a small screen and had to deal with sluggish networks.  Thanks to touch-screen technology, which enables the handsets to have larger screens, surfing the Web on a phone has fewer limitations.

    According to Harris, Nokia (NOK) is developing a touch-screen, Internet-access device specifically for Sprint’s (S) forthcoming Wimax network. Verizon will likely talk up the speed of its network when it starts selling the LG Voyager, noted the analyst.

    Analysts point to Nokia, LG and Motorola (MOT) as just a few of the cell-phone manufactures that should roll out a line of touch-screen cell phones. One analyst even thinks Research in Motion (RIMM), maker of the popular Blackberry device, could come out with a touch-screen version. Already in the marketplace is the LG PRADA cell phone, which isn’t available in the U.S. The high-end phone was launched before the unveiling of the iPhone.  Officials at the companies weren’t immediately available to comment.

    “What really differentiates the Apple product is it doesn’t have a physical separate keyboard,’’ Shaw Wu an analyst at American Technology Research. “Everything is one big screen. Apple started this new revolution.” 

    Other cell phone makers will likely wait until next year to roll out their own touch screen cell phones in part because it’s not that easy to make these types of phone, said Wu.  What's more, some of the components are in short supply thanks to Apple and the iPhone.

    Synaptics (SYNA), maker of touch-screen technology, is seeing a lot of interest from handset makers looking to incorporate the feature, said chief executive Francis Lee. He said interest was sparked before the iPhone, when the PRADA phone was unveiled, but has since been aided by Apple.

     “When you have a market leader like Apple push out something like that, it creates a lot of interest,’’ he said.

    Synaptics doesn’t think its technology will only be exclusive to high-end phones. Lee said the technology will likely find its way to lower-end phones, similar to how it’s played out with camera phones. Originally, cameras were found only in pricier cell phones, but eventually they became standard even in cheap handsets. What’s more, Lee said the technology can be incorporated into monitors and even notebook computers.

     

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