The Convergence Factor

I work for a start-up company that sells GSM phones retail on its webshop, at ImportGSM.com. As a result, I have the amazing benefit of always knowing what will be entering the market in the next 6-12 months, and get to play with all sorts of prototypes to see just how good they are.

One of the hardest things for people to grasp these days is that cellphones are, in fact, becoming fashion. As a result, I have been watching the upwards trend of purchases of GSM phones in the $500 range and above- people purchase phones not only for necessity, but as a toy.

The most classic example of this is the Motorola V3 RAZR. The V3 became a popular phone because of its "Razor thin" looks, and has been one of the U.S.'s first fashionable phones. When the Black version of the V3 came out last week, prices soared from people willing to pay over $100 above the price for the original silver version, simply because it was a different color. Fashion.

Essentially, in the next year or so the general population in the United States will start to adopt this fashion trend- at this point, it is only the early adopters that are doing it- most people can't justify a $300-$500 phone purchase because they are used to seeing carrier-subsidized prices (the $50 phones you see Cingular and T-Mobile selling). These phones are not $50 to manufacture- they cost several hundred but the carriers receive a kickback that they pass on to the consumer while locking them into a 2 year contract on their plan.

However, the idea of an "Unlocked" phone is starting to become mainstream. GSM Phones in the U.S. (Cingular/ATT, T-Mobile networks) are "locked" to the carrier- meaning you cannot use the phone you purchased though Cingular on T-Mobile's Network if you switch. This does not often happen overseas; it is a U.S. born method of locking a person to a carrier. However, like all things with software, software engineers have found a way to unlock these phones (it is perfectly legal, as phones are purchased retail and then unlocked) so that they may be used with any GSM network.

That is what ImportGSM, among others, specializes in. Unlocked phones are sold at an escalated price so that they may be used on any network. It is amazing what people will pay for a phone, simply because they are looking for a fashionable phone that will fit their lifestyle- smartphones like the Treo 650 for the mobile professional, pen phones (like the Nokia 7280, pictured at right) for the nightlife lover who wants a small phone, and phones with full QWERTY keyboards for those who text-message all day, like on the Nokia 6820.

Far more impressive is the lineup of phones that are slated to come out before the end of this year. If you thought you'd always have a cellphone, a camera, and an MP3 player as separate devices, think again. The phones introduced in 2005 will sport up to 3 and 4 Megapixel cameras, memory expansion slots that allow them to hold hundreds of hours of music, and High resolution screens that allow for video conferencing. Sony Ericsson has the W800 slated for arrival by the second quarter- this will be the world's first Walkman phone, that will allow 30 hours of playback on it's built-in MP3 player. Are you starting to think a bit differently?

It is only a matter of time before the phone, camera, and MP3 player are one refined, well-designed device. That time is just around the corner- I'd expect impressive models to be out in Spring 2006 that have mastered all three, and allowed people to have multiple phones from which they choose one to use based on a given activity they will be doing for the day, simply switching their SIM card (a small card underneath your phone's battery that holds all of your phone numbers and settings, and can be easily interchanged with other cell phones) to the phone they'd like to use and heading on their merry way.

I, for one, love to be sitting with a front seat view of what is coming. Look out for very impressive phones in the next few months, and major changes in the way we buy and use mobile phones over the next year.

(A Side note: Sorry, Verizon customers, this will never be available for you. This is only possible on the GSM network, utilizing SIM cards and GSM capabilities to easily purchase phones and switch between phones that aren't offered by the carrier.)