Gurley argues smartphones enable apps to replace expensive dedicated embedded devices at dramatically lower cost.
“I mean we were talking earlier about local, the things you can do now that I can write an app instead of building a dedicated embedded device that would have cost $2, it's night and day.”
Gurley explains Uber was impossible before smartphones due to cost of installing embedded systems in cars.
“You're not going to go install 700 embedded systems designs in every car and the wireless and build the contracts. You're not going to do all that.”
Gurley describes GrubHub's track-your-grub feature as example of smartphone-enabled marketplace workflow innovation.
“You'd never done it before. And then a few weeks ago, we released a product called track your grub.”
Gurley says apps replace embedded devices that previously cost $2,000, enabling new startup models.
“I can write an app instead of building a dedicated embedded device that would have cost $2, it's night and day. And I got all kinds of examples where our startups are using smart phones”
Gurley identifies smartphone transition as massive venture opportunity by pushing computing into the field and standardizing platforms.
“It's just massive. Like you have, you're pushing computing so far out into the field and you have standardized, even with two operating systems it kind of doesn't matter, you have standardized what is possible.”