http://www.wsj.com/articles/the-next-big-thing-in-smartphones-the-software-1484139602
Nearly a decade after taking off, the smartphone is at a turning point.
Advances in hardware have become incremental, and growth in handset sales has largely stalled. But the development of software and services on the phone is booming, driven largely by advances in artificial intelligence, expanding what the devices are capable of and making them increasingly indispensable.
The change is roiling the industry. Slowing growth has intensified a market share war in China and has pitted Huawei Technologies Co.—the world’s third largest smartphone maker—more directly against market leaders Apple Inc. and Samsung Electronics globally.
It also is a major reason behind chip giant Qualcomm Inc.’s pending purchase of NXP Semiconductors NV for $39 billion, as it looks to diversify beyond supplying chips for smartphones. And it is the reason Apple—famed for its hardware—is boasting about growth in its services.