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Form factor and operating system shifts

The late 2000s and early 2010s saw a shift in smartphone interfaces away from devices with physical keyboards and keypads to ones with large finger-operated capacitive touchscreens. The first phone of any kind with a large capacitive touchscreen was the LG Prada, announced by LG in December 2006. This was a fashionable feature phone created in collaboration with Italian luxury designer Prada with a 3" 240 x 400 pixel screen, a 2-Megapixel digital camera with 144p video recording ability, an LED flash, and a miniature mirror for self portraits.

In January 2007, Apple Computer introduced the iPhone. It had a 3.5" capacitive touchscreen with twice the common resolution of most smartphone screens at the time, and introduced multi-touch to phones, which allowed gestures such as "pinching" to zoom in or out on photos, maps, and web pages. The iPhone was notable as being the first device of its kind targeted at the mass market to abandon the use of a stylus, keyboard, or keypad typical of contemporary smartphones, instead using a large touchscreen for direct finger input as its main means of interaction.

The iPhone's operating system was also a shift away from older operating systems (which older phones supported and which were adapted from PDAs and feature phones) to an operative system powerful enough to not require using a limited, stripped down web browser that can only render pages specially formatted using technologies such as WML, cHTML, or XHTML and instead ran a version of Apple's Safari browser that could render full websites not specifically designed for mobile phones.

Later Apple shipped a software update that gave the iPhone a built-in on-device App Store allowing direct wireless downloads of third-party software. This kind of centralized App Store and free developer tools quickly became the new main paradigm for all smartphone platforms for software development, distribution, discovery, installation, and payment, in place of expensive developer tools that required official approval to use and a dependence on third-party sources providing applications for multiple platforms.

The advantages of a design with software powerful enough to support advanced applications and a large capacitive touchscreen affected the development of another smartphone OS platform, Android, with a more BlackBerry-like prototype device scrapped in favor of a touchscreen device with a slide-out physical keyboard, as Google's engineers thought at the time that a touchscreen could not completely replace a physical keyboard and buttons. Android is based around a modified Linux kernel, again providing more power than mobile operating systems adapted from PDAs and feature phones. The first Android device, the horizontal-sliding HTC Dream, was released in September 2008.

In 2012, Asus started experimenting with a convertible docking system named PadFone, where the standalone handset can when necessary be inserted into a tablet -sized screen unit with integrated supportive battery and used as such.

In 2013 and 2014, Samsung experimented with the hybrid combination of compact camera and smartphone, releasing the Galaxy S4 Zoom and K Zoom, each equipped with integrated 10× optical zoom lens and manual parameter settings (including manual exposure and focus) years before these were widely adapted among smartphones. The S4 Zoom additionally has a rotary knob ring around the lens and a tripod mount.

While screen sizes have increased, manufacturers have attempted to make smartphones thinner at the expense of utility and sturdiness, since a thinner frame is more vulnerable to bending and has less space for components, namely battery capacity.