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What Is a Smartphone?

The term smartphone refers to a handheld electronic device that provides a connection to a cellular network. Smartphones were introduced to the world in 1994 by IBM but have since expanded to include companies like Apple and Samsung.1
World Economic Forum. “IBM Created the World’s First Smartphone 25 Years Ago.”

Although they were originally meant to allow individuals to communicate via phone and email, smartphones now allow people to access the internet, play games, and send text messages in addition to making phone calls and sending emails.

Understanding the Smartphone

The world’s first smartphone was created by IBM in 1994. Nicknamed Simon, the smartphone included revolutionary features including a touchscreen, email, and built-in apps including a calculator and a sketch pad. Cellular phone functionality has continued to improve since then, especially in the years after 2000. By 2007, Apple (AAPL) released its groundbreaking iPhone.2 When iPhone 3G was released in 2008,3 there were more than 3.6 billion mobile connections around the world.4
GSMA Intelligence. “Quarterly World Review: Q2 2008.”

Before the inclusion of internet browsing on mobile phones, network operators relied on the fee structure that they relied on for decades—calling another line cost a certain flat rate and sending a text message cost another flat rate. The introduction of smartphones dramatically altered the telecommunications sector. While cell phones were considered the death knell of land-based phones, smartphones were considered the death knell of the prototypi

It’s estimated that more than 5 billion people have mobile devices, which represents approximately 94% of the population of advanced economies and 83% of emerging economies, according to Pew Research Center

Changes in the Cost of Smartphones

The cost of cell phones has decreased over time thanks to the proliferation of mobile technology and Moore’s Law. The first handheld cellphone, the Motorola DynaTAC 8000X, cost a whopping $11,000 in today’s currency.7 National Museum of American History. “Dynatac Cellular Telephone.” That cost has gone down significantly. For instance, the average cost of a smartphone was around $471 in 2014 and dipped down to $402 in 2016.9 Prices may be lower, but they’re still not cheap. That isn’t affecting demand, though.

Impact on Social Media

The popularity of smartphones has also created business opportunities outside of the development of operating systems and the construction of device hardware. The creation of smartphone software applications, or apps, has become a multibillion-dollar industry.11

Apps are downloaded to a smartphone via a store, which is controlled by the company that has created the operating system that the smartphone uses. In many cases, apps are free to download, but in some cases, there is a fee. Application developers may include advertisements in the app content once opened or may sell products through the app.

One of the major beneficiaries of the rise in smartphone adoption has been social networks, such as Meta (META), formerly Facebook. Being able to log into a social network account from a smartphone has increased the number of hours that people spend on the network, which has dramatically increased network revenue. The behavior of smartphone users has, in some cases, been the driving factor in the changes to social networks that were once dominated by people using their personal computers for access.

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