
Some believe that AR(Augmented Reality) and VR(Virtual Reality) will drive up the demand for smart phones, others hold opinion that smart phones we know will die out. Hololens inventor Alex Kipman went on to say that the phone is already dead. He believes that AI enables devices will render the smart phone obsolete. Recently Microsoft corp. introduced a new product, an easy to carry laptop with fast boot up process and new Windows version, to compete against Apple's Mac. Microsoft has explored several other categories in the hardware area like the tablet-laptops and smart phones, but with these several other gadgets in its pipeline, the absence of smart phones is conspicuous. Although the Hardware Marketing Chief of Microsoft didn't think of the absence as a big deal.
Virtual reality (VR) is the umbrella term for all immersive experiences, which could be created using purely real-world content, purely synthetic content or a hybrid of both.In virtual reality, everything is make-believe (simulated). In augmented reality (AR), there are virtual objects overlaid on top of real objects, but they are just little suspended movies — you can’t interact. Once you can interact with those not-really-there objects, that’s the realm of mixed reality (MR).

But Alex Kipman have points in favour of
his statement too. People seem to be tiring of smartphones and have
contradictory demands – they want bigger devices but also devices that have a
long-lasting battery life. According to an Ericsson survey in 2015,
one out of two smartphone users from one lakh respondents across 40 countries
believed that smartphones will “be a thing of the past” in five years and AI
would have successfully replaced it. Microsoft CEO Satya Nadella put forward
this view when asked about Microsoft’s seeming reluctance to continue working
in the phone market. “So when you say 'when will we make more phones' I'm sure
we'll make more phones. But they may not look like phones that are there
today."