For handset makers, software is the key

The latest crop of "superphones" is great, but sexy hardware with a humdrum smartphone operating system isn't enough anymore. Companies like HTC, Motorola and Samsung need to improve their unique software in order to thrive in this brave new world.

Just as carriers don't want to become dumb pipes, handset makers can't afford to just become pretty shells.

We're in a golden era of smartphones, as each major mobile operator has at least one high-end handset that could easily be considered best in class. AT&T has the iPhone 4, Verizon has the Motorola DROID X and Sprint fans can buy the EVO 4G. Samsung's Galaxy S lineup could easily be considered top-shelf as well, and these phones will soon be available on the top six carriers in the nation.

When I get asked by friends and family about what smartphone they should get (and this comes up far too often), I now only ask them about how much they want to pay each month and what carrier has the best coverage in their areas. Despite what the enthusiasts might say, there is very little practical difference between the iPhone and the top-shelf Android phones - the devices are just that good now.

The average consumer could buy any of the aforementioned phones and be extremely satisfied until it's time to upgrade in a year or two.

That sounds like great news, right? The answer is "yes and no" if you're a handset maker. The good part is the explosion of mainstream smartphone adoption means more sales. These devices are increasingly becoming a commodity, however, which makes it difficult to stand out. By and large, all these "superphones" come with large, high-resolution screens, 1GHz processors, good camera and access to tens of thousands of apps.

The way for manufacturers to stand out is with their own software tweaks, but this can be more difficult to execute than you think.

Motorola's first version of MOTOBLYR on the CLIQ and Devour created a new user experience based around social networking. It was intrusive, though, and it made these handsets seem like toys instead of powerful mobile computers.

The latest version of Motorola's software on the DROID X is toned down and far more effective, I believe.

HTC's Sense UI is widely considered the best software layer coming from a handset maker and I've found it adds some nice eye candy to devices like the EVO 4G. I've also been tooling around with AT&T's Samsung Captivate lately, and the TouchWiz 3.0 UI introduces many iPhone-like visual features and added functionality.

A pretty face is all well and good but I find that I really appreciate small tweaks that make a phone easier to use. For example, I think the pull-down notification bar on Android phones could be a gold mine for subtle innovations. The myTouch 3G Slide adds an app switcher to this bar and the Captivate smartly adds Wi-Fi, GPS and ringer controls to this panel. When the major handset buying considerations are equal, it can be small differences like these that sway potential customers.

The biggest challenge in this area may be coming from the operating system providers. We all know that Apple and Research In Motion won't license their respective platforms to other handset makers, and I'd also be surprised if Hewlett-Packard lets others use webOS in the future. That leaves Google's Android and Microsoft's Windows Phone 7 as platforms for handset maker innovation and both are making moves to take control of the user experience.

Microsoft will reportedly not allow handset makers to layer on new user interfaces on Windows Phone 7 as it wants to avoid the pain it felt with Windows Mobile. HTC has already said it will find a way to bring Sense UI to this upcoming platform but it's too soon to tell how big a role this will play.

Google is also supposed to be working on the UI of Android in the 3.0 version in order to make third-party skins unnecessary. Google has never really shown it knows how to design a mobile UI for the mass market, so I don't think handset makers should have too much to worry about.

Besides, Android is open source, so handset makers should be able to do what they want with the OS.

Contact Marin Perez via email or follow @Marinperez on Twitter