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Thursday, January 22, 2004 8:22:12 PM
However, I think the huge price drop in the average pc over the last decade has been responsible for fighting off embedded devices, thin clients, and other would-be contenders. The question is, can prices continue to fall even as the market matures? India and China are clearly not ready to absorb very many high-end processors, and that doesn't seem likely to change soon. And of course, fixed costs grow ever higher as the technology advances...
One thing you do notice is how embedded devices have taken over certain functions which used to be "killer apps" of the pc world. PDAs, Ipod, etc.
Already my laptop needs would be best satisfied by a scaled up PDA (having better battery life, less weight, no hard drive, etc.)--if such a thing existed. 95% of what I do on a computer can be adequately done on a new Clie PDA, and the rest will be soon (or can wait till I get home). With a nice keyboard and bigger screen, I'd buy it. I don't think I'm alone there, and that really does represent a change from just a few years ago.
The consumer trend toward laptops might be the first sign of a shift. If tablets really take off, then that would be a bigger one. Microsoft's energy seems to be more in other platforms than the traditional pc, even as it has given a dividend and become a low-growth stalwart.
blauboad
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