John Maeda, has written an excellent piece entitled "The product is the message; the message is the product". namely that communication itself is becoming the primary core of consumer products.
In it he describes how consumer products are now being developed with communication at their heart. Whereas in the past technology would drive a product release, now the emphasis is on the software that comes with the product and the ability of the consumer to communicate easily using that product.
...and he doesn't just limit these products to technical gadgetry. Another example he cites is Webkinz. Webkizs are cuddly toys that have a 'unique secret code'. Once this code is used to access the Webkinz World online, they can create virtual versions of their pets which they look after online, answer trivia quizzes and play exclusive games which can earn kinzcash, chat with others via kinzchat and enjoy a plethora of other content.
It's this content, accessed via the Secret Code, and not the toy itself which is driving demand for this toy in the US.
It's exactly the same with technology. Give me an average phone that uploads basic photos to Flickr or videos to Youtube easily and syncs with my address book seamlessly and I'll value that phone more than one which has a 5 mega pixel camera and video slow-mo but no way of easily uploading and sharing those photos with my friends.
