We’re only a few days away from Apple’s (AAPL) September 9 event, where the company is expected to unveil the iPhone 6. Apple is hoping you’ll think it’s the best smartphone available — regardless of platform — and the company is packing it with features and capabilities to make it the mobile equivalent of a Swiss Army Knife.
If all goes according to plan, the iPhone 6 will be capable of doing just about anything anyone would want a mobile device to do. A true all-in-one smartphone.
The latest piece of the puzzle appears to be mobile payment. Bloomberg’s Matt Townsend says Apple is finally adopting NFC (near-field communications) with the iPhone 6 and has agreements in place with major credit card companies including Visa (V).
Google’s (GOOG) Android supports NFC mobile payments with a smartphone — theoretically making the device a replacement for your wallet too — but it’s not that easy. There are multiple competing standards for mobile payment, and some of the players are actively blocking each other. For example, payment app Isis counts three of the big U.S. wireless carriers among its supporters, but to push that standard they actively block NFC payment using Google Wallet on Android phones sold to their customers.
As a result, mobile payment using a smartphone has so far failed to take off with consumers and retailers in a big way.
How to Make the Overall Best Smartphone
Apple and its competition have been striving to make their smartphone the center of your universe for years, but no one has quite nailed it yet. In part, that’s because different demographics have different needs.
For example, HTC has attempted to differentiate itself by appealing to the youth market. Its HTC One includes features that appeal to a younger crowd such as metal-clad styling, powerful front-facing speakers, premium ear buds and a camera optimized for low-light indoor shots. (The latest version is reviewed here.)
Microsoft’s (MSFT) Nokia has been chasing photography buffs, making high-quality cameras a primary feature of its flagship Lumia smartphones.
Samsung (SSNLF) is perhaps the most obvious example of trying to create the best smartphone for everything, with its Galaxy line. Packed with everything from a heart rate monitor to a TV remote, the Galaxy S5 can do a lot, but Samsung’s devices are often accused of suffering from feature overload. That comes in part because Samsung runs its own user interface over top of Android, and the result can be overwhelming for typical users.
With the iPhone 6, look for Apple to make its move for the all-purpose smartphone that finally nails the formula, becoming the device that replaces everything from your wallet to your house key — without being a confusing mess.
Here’s a closer look at the different ways Apple is trying to make iPhone 6 the best smartphone for everything:
#1 — Best Smartphone For Mobile Payments
If reports are correct and Apple has indeed inked an agreement with the credit card companies, the iPhone 6 could replace your wallet by taking advantage of the NFC terminals showing up in stores. Retailers have been wary about payments using a smartphone, but much of the unease has been around uncertainty about what direction Apple would eventually take. No one wants to take the plunge of investing in technology only to have trendsetting Apple go in a different direction.
With the biometric security of Touch ID, Apple’s extensive iTunes credit card accounts and the support of credit card companies, an iPhone 6 equipped with NFC could be the device that finally breaks the mobile payment market open and becomes the best smartphone for shoppers.
#2 — Best Smartphone Size
We’re expecting two iPhone 6 models, a phablet and a smaller 4.7-inch version. The 4.7-inch iPhone 6 is larger than the current iPhone 5s, but significantly smaller than flagship smartphones like the Samsung Galaxy S5 and HTC One, both of which moved to 5-inch displays.
Apple will be positioning the smaller iPhone 6 as the primary consumer model and arguing that its 4.7-inch display is the ideal size for the majority of users — big enough for reading and typing, but still small enough for single-handed use and to slip in a pocket.
#3 — Best Smartphone for Health and Fitness
With HealthKit, expect Apple to push the iPhone 6 as the center of your health and fitness life. Sensors in the iPhone 5s can already track activity, and HealthKit will mean your iPhone plays nice with any additional sensors or trackers you choose to use. With iOS 8, a medical info card is offered as a Home Screen for iPhone users, displaying the user’s critical medical data and emergency contact info.
#4 — Best Smartphone for Home
HomeKit is Apple’s attempt at making the iPhone the center of the connected home. The company isn’t expected to release Apple-branded smart devices like thermostats or door locks, but with HomeKit the iPhone becomes the one device that controls them all.
The early success of the smartphone market was driven by the huge leap in capabilities over feature phones. Web browsing, games and other apps, video streaming and mapping applications all helped convince consumers to ditch their cell phones and buy a smartphone.
Bottom Line
With the smartphone market now a mature one (at least in the U.S.), manufacturers need something more compelling than a bigger display to drive the next big wave of smartphone upgrades. Being able to say that your product is the best smartphone on the market because it replaces everything — from your camera to your wallet — is the goal.
And if those reports that Apple is adopting NFC and taking the plunge into mobile payments are correct, it will have positioned the iPhone 6 to be the all-in-one smartphone.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
