Smart apps, not Smart phones are the key to future growth!

An article in The Korea Times today caught my eye, because of its headline, "Smartphones remain key to Samsung, LG earnings."  The opening sentence of the article (which I encourage you to read here) reads as follows. "Despite the ongoing slowdown in the global smartphone industry, conflicting earnings forecasts from Samsung Electronics and LG Electronics indicate how crucial handsets remain as their key profit driver."  Indeed, this is the current narrative and thinking of many here in Korea.  Unfortunately, it does not square with global trends and the reality that this nation faces.  For well over decade now leaders of the ICT sector, from industry, government and academia, have recognized the need for Korea to shift from its heavy dependence on hardware manufacturing and export, to software and services.  Globally, services constitute the major part of the ICT market.  More importantly, they are growing at a much faster rate than the hardware segment of the market.