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Investing In Tactile Feedback: Haptics & Groundbreaking Touch Technologies Rumble With Investor Profits

By Karim Rahemtulla, Advisory Panelist
Friday, February 16, 2007: Issue #396

When it comes to new technological revolutions, some fizzle and some catch fire. I believe this fast-growing industry is poised to become one of the latter. In fact, it’s already making its presence felt in many different applications – from cellphones, to bank ATMs, to car-navigation systems.

And when you talk about new technology, it wouldn’t be a surprise to see Apple (Nasdaq: AAPL) at the forefront. But it isn’t. Yes, Steve Jobs and Co. are preparing to release the iPhone this summer. And yes, it’s unique in that it doesn’t have a conventional keyboard or keypad – something we’re all used to when using a phone or computer.

But there’s a flaw – one that will be evident when the iPhone hits the stores… The iPhone lacks what is known as tactile feedback.

Grumble About No Rumble

Tactile feedback is the sensation that you get when you touch a button or a screen, and it touches back to let you know that it accepted your command and is functioning. And it’s this fast-growing touchback application that is upgrading the way we conduct our business and pleasure.

Take video games, for example. Until pretty recently, most gamers were used to playing games that made a lot of noise and gave visual cues and satisfaction. If you were playing a car racing game, you had to look at the screen to know if you were going to hit a barrier or slide on an oil patch.

But that changed in the mid 1990s when a new technology sprung onto the gaming market. It was called “force feedback,” which is better known as “haptics.” This technology basically allows gamers to feel what is happening on the screen.

For example, if you shot a bazooka in a war game, you can feel the vibrations through the controller that affirm a shot. For racing games like Gran Turismo, you can feel the effect when you bounce over a bump or smash into a barrier. The feeling is transmitted through actuators in the hand-held controllers, which are sent signals by software embedded in the game and the console.

Power Up The Tactile Feedback

Fast forward to today, where the science of applying touch (tactile) sensation and control to computer interaction has moved ahead by leaps and bounds. But the potential is still untapped.

The next generation of haptics and tactile feedback allows for actual feeling of degrees of touch.

For example, whereas in the old days, if you were playing a game and used a haptics-enabled controller, you’d feel a distinct vibration when you did something that caused it.

But today, you can feel a stronger response depending on the strength of the application. So if you’re energizing a light saber in a “Star Wars” game, the actual sensation that you feel will increase, based on the increase in the power of the light saber.

But while it may be fun to experience the feeling of tactile feedback in a game, there are many more important applications that are already in the market.

100% Phone Feedback

Given the “cool factor” of this new technology, it’s perhaps surprising that Apple hasn’t incorporated it into its iPhone. You see, when using a regular touchscreen phone, you have to look at the screen at all times to make sure that the button you pressed was actually pressed.

And while you might get an audible response, wouldn’t it be great if you could experience the full range of sensory stimulation through visual, audible and also tactile feedback cues?

You can. And one cutting-edge company holds the key and the patents to make this happen.

In fact, while Apple is still readying the iPhone for release, the firm has already incorporated its tactile technology into Samsung’s line of touchscreen phones that will be released prior to the iPhone.

Haptics Plays Doctor: Sensory Stimulation In Surgery

Another critical area where tactile feedback is breaking ground is in the medical field – specifically in surgery.

In this case, trainee surgeons are able to “feel” their way through surgical procedures – a cutting-edge experience that allows them to gauge how they’d perform an actual operation in reality. Again, this advanced tactile feedback technology enhances the user’s visual cues.

Investing In Tactile Feedback: The Ground Floor Of An Explosive Industry

Tactile feedback and haptics are still in their infancy. But the applications that can use this technology are beginning to explode, and the possibilities for this technology are almost endless. In addition to cellphones, video games, ATMs, cars, casinos, and medical applications, it can also be used in the military field.

Imagine being in military combat. Would you want your equipment to give you audible cues, or haptic ones? This is the future of haptics – the ability to provide you with extremely accurate tactile feedback that has been unavailable to date.

But right now, few are aware of the potential power that this technology has. And even fewer are aware of the major players in the field. That means savvy investors who get in early will be the ones who will claim the bulk of the gains.

The companies that will benefit from this new sensory feedback are those in the technology field that are quick to adapt haptics to their product portfolio. Make no mistake: Touch technology, like tactile feedback and haptics, is here – and it’s here to stay.

Good trading,

Karim Rahemtulla

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