High tech has always meant cool stuff. Pathbreaking devices have repeatedly expanded the frontiers of consumer electronics, from the early game consoles of the 1970s to the rise of the smartphone in the 2010s. But now that it’s literally possible to shoot a feature film on a mass-market phone, future device development is likely to see diminishing returns. Instead, the 2020s will probably herald a shift from devices to apps. The smartphone isn’t going to disappear, but it is becoming more valuable for the apps that run on it than for the electronics that run in it.
The shift from devices to apps means much more than just a new business model for the likes of Apple and Samsung. It also has serious economic and even geopolitical implications. Unlike devices, which are tied to physical production networks, apps can be developed anywhere. As a result, the Indian economy, long hobbled by its relative isolation from tight-knit East Asian subcontracting networks, may finally be freed from the tyranny of geography.
