Fingerprint Sensor Technology by Apple Inc. (NASDAQ:AAPL) might Result in a Smartphone Boom

Apple Inc
Apple Inc

According to a reliable source, Apple Inc. (NASDAQ:AAPL) is launching a new iPhone next month. KGI Securities and ABI Research – prominent industry watchers – have informed that the new iPhone will have a unique fingerprint reader. AuthenTech Inc., a fingerprint-sensor maker was bought by Apple for $350 million last year.

Precise Biometrics AB’s CEO Thomas Marschall, says that this move by Apple shows that market leaders consider biometrics a part of their own roadmap. The fingerprint sensor by Apple has compelled its competitors to come up with other alternatives to compete with Apple. According to Marschall this could very well be a beginning of a new race in the smartphone industry. Precise Biometrics are based in Sweden and specialize in making verified equipment like fingerprint sensors.

Cell phone manufacturers are focusing their attention towards biometrics to add more speed and security to their smartphone devices. Just the way touch screen technology saw a boost back in 2007 after Apple launched its iPhone, fingerprint sensor by Apple might also help give a boost to the fingerprint technology.

Apple’s deal with AuthenTec has already increased the market value of Precise Biometrics’ shares due to the possibility that fingerprint sensor technology might become popular. A Taipei based KGI analyst, Kuo Mingchi says that iPhone’s fingerprint sensor will allow the user to easily access their files and purchase items through their mobile phone’s internet. It is believed that this feature will put Apple ahead of other android devices in terms of security.

Fingerprint sensor will be very important for Apple because more and more people have starting shopping online through their mobile phones, which means more security is needed. A Gartner Inc’s researcher believes that transactions through mobile phones will go up to $721 billion in 2017; currently this figure is $235 billion.

Smartpones are the fastest growing devices in the cell phone market. The second quarter sales results show that around 225 million smartphones were sold across the globe. This figure is a jump up by 46.5% from the figure of last year’s second quarter. This increase in the sales of smartphones is accompanied by a drop in the sales of feature phones by 21% (210 million sales). Sales growth of smartphones is biggest in Asia/Pacific where it went up by 74.1%, in Latin America it went up by 55.7% and in Eastern Europe by 31.6%.

Anshul Gupta, an analyst at Gartner Research says that smartphones captured the 51.8% of the mobile phone market, leaving behind feature phones in 2013’s second quarter.

Samsung is currently the market leader in smartphones sales with a market share of 31.7%, Apple Inc. (NASDAQ:AAPL) is in the second place.