Mobile phone handsetPeople are paying more for phones. After years of falling prices, market research firm GfK reports the average price of a phone climbed seven percent in the last year. The number of phones sold worldwide climbed three percent during the year. Sales fell in North America and Western Europe.

GfK works with actual sales data rather than the shipments preferred by some analysts. This means the information is a more accurate reflection of consumer behaviour.

The clear pattern is that phone makers have switched focus towards more expensive premium smartphone models. Apple, Samsung and, most of all, Huawei all moved their customers upmarket. GfK says the premium features have become more important to customers.

What phone buyers want

They now look for: “water and dust protection, battery power and memory, high-resolution sound, camera and video capabilities, bezel-less design and even biometric sensors”.

Rising handset prices run counter to conventional technology hardware wisdom. The usual pattern is for prices to fall over time as manufacturers improve processes and wring out economies of scale. This is accelerated by new market entrants undercutting existing players.

The phone market has been running on a different track ever since Apple introduced the first iPhone a decade ago. For most of that time Apple has made almost all the industry’s profit despite having only a minority market share.

Aggressive phone prices

To a degree Apple’s rivals bought market share with aggressive discounting. That made sense to them during the growth years as people around the world bought their first smartphones.

It meant the phone business went through the usual economic cycle much faster than earlier technology waves. While it was always a competitive business, there were far few players than in, say, personal computer hardware.

There have been casualties along the way. Blackberry, Nokia and HTC were all roadkill on the route to today’s market.

Chasing margins

Now the phone makers, especially the Android phone makers, have turned their focus to margins and profitability. Hence the price rises. Apple pushed the bar higher again with its iPhone X which costs more than NZ$2000. Huawei has an even pricier phone.

Huawei is knocking on the door of Apple and Samsung. It aims to be the first Chinese company to be a global technology quality brand.

There’s still a way to go. The company’s products are excellent quality and contain as much innovation as brands like Samsung. Unlike Samsung, Huawei is on the whole more inclined to invest in engineering than in marketing budgets. That said, the company uses Scarlett Johansson in its advertising to great effect.

Huawei also teams with prestige brands. Its high-end phones use Leica camera lenses and its most expensive models have blingy Porsche designs.

Despite the company’s engineering prowess, Huawei has yet to master the art of looking after a customer after the sale. The biggest complaint you hear is that phone software is rarely, if ever, updated. That may be an issue that only concerns a certain market segment. Ironically, it is the market segment most likely to be drawn to advanced engineering.

Artificial intelligence

Huawei’s latest phone, the Mate 10, includes the kind of artificial intelligence features found in Apple and Samsung models. It’s ability to translate written languages feels almost like magic, or perhaps something from science fiction. In a similar vein, the phones take screenshots when you knock on the display with your knuckle.

For now, the sector’s move upmarket has created opportunities for mid-tier phone makers like Oppo. It’s another Chinese brand. Oppo sells an Android phone with about 90 percent of premium phone functionality for about 50 percent of the price.

Although Huawei would love to be seen as a serious rival to Apple, in truth the two address two quite different audiences. Few Apple iPhone owners would jump ship for a Mate 10. That’s not the case with Samsung customer, the two brands both use the same basic Android software and switching is relatively painless.

Phone prices rising as users move upmarket was first posted at billbennett.co.nz.

I talk on Radio New Zealand National Nine-to-noon programme with Katherine Ryan about the US government moves to scrap net neutrality rules. It’s available as a 20-minute audio stream or download. 

This has been on the cards since the US election a year ago. It’s a move the telecommunications giants pushed for, no-one else is happy about the idea. In the audio, I explain some of the ideas behind the issue and why there is such a fuss in the US about it when most other countries don’t seem to care.

If you’re new to the subject or would like some background on how net neutrality applies here,  Net Neutrality in New Zealand will bring you up to speed.

I’m not an early adopter.

Early adopters must own the latest devices. They run ahead of the pack. They upgrade devices and software before everyone else.

Early adopters use the latest phones. They buy cars with weird features. They queue up in the wee small hours for iPhones, iPads or games consoles. Back in the day they’d go to midnight store openings to get the newest version of Microsoft Windows a few hours earlier.

Their computers never work because they are awash in beta and alpha versions of software screwing things up.

And some of their kit is, well, unfinished.

Computer makers depend on early adopters. They use them as guinea pigs.

Early adopters first to benefit

Marketing types will tell you early adopters will buy a product first to steal a march over the rest of humanity. They claim they will be the first to reap the benefits of the new product. It will make them more productive or live more enjoyable lives.

This can be true. Yet early adopters often face the trauma of getting unfinished, unpolished products to work. Often before manufacturer support teams have learnt the wrinkles of their new products.

There’s another reason computer makers love early adopters — they pay more for.

New products usually hit the market with a premium price. Once a product matures, the bugs eliminated and competition appears, profit margins are slimmer.

Companies use high-paying early adopters to fund their product development.

Being an early adopter is fine if you enjoy playing with digital toys. If productivity isn’t as important to you as being cool. If you have the time and money to waste making them work.

I don’t. I prefer to let others try things first. Let computer makers and software developers iron out the wrinkles while the product proves its worth. Then I’ll turn up with my money.

In technology the early bird pays the bill.

Why I’m not an early adopter was first posted at billbennett.co.nz.

Huawei Mate 10Huawei’s marketing wants to tell you about the artificial intelligence features built into the Mate 10 phone. Its AI technology is impressive, but that’s not the best reason to choose the phone over its closest rivals.

The Huawei Mate 10 is a first-class Android phone that, at NZ$1100, also represents good value for money. There’s also a $1300 Mate 10 Pro model with a larger screen.

When it comes to performance, the Mate 10 is the match of anything from Samsung. On a good day the phone’s technology may even turn heads away from Apple’s iPhone.

The front of the phone has that now familiar all screen look. There are thin bezels at the side and minimal case sections surrounding the screen at the bottom and top of the front. It looks a lot like a Samsung Galaxy S8, but with fewer curves.

Modern look

It looks good and is distinctly modern. Yet it isn’t quite as pretty as the latest Samsung Galaxy S8 or the iPhone X. It feels better in the hand and has a higher quality finish than the cheaper Oppo range of phones.

You could say the same about the screen. It’s a 5.9-inch display with full HD. It looks great, but again, it isn’t quite as outstanding as the best from Samsung or Apple. Even so, the blacks are dark and the colours are vivid. Images are beautiful. You can view the screen from wide angles.

One thing Huawei shares in common with Samsung and Apple is that it makes its own chips. This gives all three an edge over their rivals. For the technically-minded, the Mate 10 has a Kirin 970 processor with eight cores. For the rest of us, that means powerful by phone standards.

It also means built-in artificial intelligence processing. That’s a must-have in a 2017 premium phone.

Fast

In practice the phone is fast. Apple phones always feel silky smooth in everyday performance, but some Androids struggle to keep up when pushed. The Huawei Mate 10 coped with everything a normal user might throw at a processor with aplomb.

Much of the phone’s artificial intelligence takes place in the background. The Mate 10 learns your behaviour, then queues the apps you’re most likely to choose next so they load faster. The AI also helps with photography.

Long, long battery life

The Mate 10’s superpower is battery life. According to the marketing material, there is a 4000 mAh high-density battery. This is more battery than you’ll find on most other phones. Huawei says it is the same amount of power as you’ll find on a tablet.

On top of that, Huawei has software that adapts battery use to the phone owner’s usage patterns to squeeze out even more life. Huawei says that means over a day’s heavy use and two days normal use. In testing it easily achieved those claims.

Typically the Mate 10 can go around 50 hours before needing a top-up. Many other Android phones struggle to get to 30 hours. For some people that is a good enough reason to buy a Mate 10 without looking at anything else.

Software, cameras, intelligence

Like Samsung, Huawei thinks it can improve on the raw Android software experience. It uses something called the Emotion UI. You can tinker with the software to a ridiculous degree and, if you prefer, can wind everything back so it looks like a straight Android phone. Tinker more and it can look like iOS.

Every premium phone maker will tell you they have the best camera. In a sense, they are all right. Each has its own pluses and minuses. If you are fussy about phone photography, you should spend your time researching and, where possible, testing the alternatives before choosing.

The Huawei Mate 10 Pro has the latest Leica dual camera. They’ve all been impressive, but this iteration is by far the best so far. The rear pairs a 12-megapixel colour camera with optical image stabilisation with a 20-megapixel monochrome camera.

Fast lenses

Both have fast f/1.6 lenses. The two work in tandem, the arrangement boosts detail and captures the best colour. It all works well in most lighting conditions.

This is where the artificial intelligence can come into play. The processor can detect the scene being shot and adjust settings accordingly.

It doesn’t always make the choices a skilled human might, but the results can be outstanding. The only negative is that the sheer number of shooting modes and photography features takes a lot of time to master. Far more time than a product review like this.

Huawei Mate 10 verdict

You are unlikely to be disappointed with any late 2017 premium phone. They are all good. The Mate 10 ticks most of the same boxes as its rivals but will leave you with hundreds of dollars in your pocket. On that basis alone it has to be considered.

The Mate 10 doesn’t have wireless charging, which is unlikely to be a deal breaker for most readers. On the plus side the long battery life means less emphasis on charging anyway. It also charges quickly, the battery goes to half a full charge in a little under 30 minutes.

Huawei Mate 10: Punchy, long battery life, artificial intelligence was first posted at billbennett.co.nz.

fibre opticWhat will move New Zealanders from copper to Ultra-Fast Broadband?

Or as we used to say in the 1990s: “What is the UFB killer app”?

Video is the simple answer. It’s not the only answer. We’ve been using video communications tools such as Facetime and Skype with success since the early days of ADSL. Video conferencing worked up to a point on dial-up connections. It worked better on ADSL and performs fine on most copper-based VDSL connections.

The same goes for streaming video entertainment. You can, at a pinch, watch it on all but the most feeble connection. True, you get a better experience on a faster connection. And there’s little point trying to watch a high definition movie if you have slow internet.

High definition video

Yet even HD video works fine on a VDSL connection. You need to have rarified tastes to need more than, say a 30 Mbps connection.

Sure, 100 Mbps plus is necessary if more than one person in your house is watching at the same time. And, yet, Vodafone does specify that you need a 100 Mbps connection to watch Vodafone TV.

Fibre improves the video experience mainly because it is faster. It’s also more reliable, less prone to outages.

Speed is the real killer app for fibre-based broadband. Faster broadband means you can do things that were either marginal or flaky with copper connections.

What about wireless?

Many fixed wireless broadband customers are able to get speeds that are fast enough to watch streaming video. Most of the time. There are issues.

First, fixed wireless bandwidth is shared. That means if you live in a neighbourhood with lots of other fixed wireless broadband connections, the performance can drop when everyone else is online. The can mean peak evening TV viewing hours.

Second, for now, the fixed wireless broadband plans on sale in New Zealand have data caps. That means you only get so many video viewing hours each month. That’s fine if you’re a light TV watcher, but is a deal breaker for many.

Even when everything is working fine, fixed wireless broadband connections tend to be slower and less reliable than fibre connections. Technology may change that — one day. For now, you can’t be guaranteed there will always be enough speed.

In today’s word, speed is the killer app.