SAN FRANCISCO - As Apple and other smartphone makers find it harder to wow consumers with new devices, engineers think future breakthroughs may depend more on finding new ways to integrate existing components than on inventing more powerful chips.
Apple's new iPhone 5S introduced on Tuesday shows how difficult it is to keep coming up with compelling innovations after years of blockbuster hits. The new device boasts a fingerprint reader and a beefed up processor, but it failed to inspire a rally on Wall Street typical of past smartphone launches by the Cupertino, California, company.
While the first iPhone captivated the world in 2007 with multitouch screens and Apple's intuitive iOS platform, more recent top tier phones have featured less spectacular breakthroughs and consumers are becoming harder to impress. Many on Wall Street are concerned that serious smartphone innovation is drying up.
The new iPhone's inclusion of a an emerging kind of chip, called the M7, points to where Apple and engineers at other technology companies are delving for future innovation that they hope will keep consumers hyped up about to smartphones.
The M7, along with similar chips used by rival Samsung Electronics, helps smartphone makers take a small step among many toward what experts call contextual or perceptual computing - an emerging trend of enabling smartphones and other devices to continuously integrate data from cameras, microphones and other sensors so that devices can monitor the environment constantly and in real time, and react to it intelligently.
With varying degrees of accuracy and energy efficiency, gyroscopes, barometers, microphones and radio chips already found in many phones can track location, position, orientation - a partial glimpse of what the user is physically doing at any given moment.
The M7 coprocessor is meant to handle data from the iPhone's sensors using less battery power than the phone's main chip would use to manage the same data. That opens the door for developers to create applications that make more or even constant use of sensors in the phone, a small but important step toward improving contextual computing.
"We're moving from purely computing, where you provide the data, to an intelligent system, where it collects its own data and then computes," said Gartner analyst Sergis Mushell. "But we're still far away. We're at the IQ level of frogs right now compared to humans."
Samsung uses sensor processing chips made by Atmel in its Galaxy Note 2 and Galaxy S4 devices and they are on their way to becoming ubiquitous in high-end phones, said Barclays analyst Blayne Curtis.
Smartphones already offer hints of contextual computing although the technology has yet to become a big selling factor for consumers. Phones using Google's Android platform make suggestions of maps and navigation to different destinations, like the home or office, depending on a user's location, habits, traffic and time of day.