The downside to the productivity and communication tools that smartphones provide is that employees are always connected to their work. With work-specific apps, the ability to connect with co-workers and employees at all times, and the ability to transfer data, it's very easy for your work to swiftly dominate your life with a smartphone. Such exhausting constant contact can lead to low morale, poor productivity and malaise in your workforce.
The smartphone's useful tools are contrasted by the bevy of endless ways you can mindlessly occupy time. Games, social networking applications, videos, and fully functional Web surfing are a few examples. The modern smartphone can easily consume your entire day if allowed and produce almost nothing of value for it. Employees can easily idle away an entire shift instead of focusing on the task at hand.
The dark side of constant innovation is the constant rendering of older units as obsolete. As each generation of smartphone comes out, older systems become increasingly under-supported. This necessitates users purchasing a new phone every two years or so just to keep up with current technology -- a decidedly expensive venture for a company looking to equip their entire workforce with smartphones.
As smartphones evolve, technology evolves to keep pace with them. As technology improves, new functions are added that increase the productivity capabilities of smartphones. Software engineering firms also see a boost in demand, leading to greater job creation. Smartphone manufacturers will also need companies to fabricate their products, leading other companies to increased demand and job creation.