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Beyond the PC

2011-10-13 08:27:36

Mobile digital gadgets are overshadowing the personal computer, says Martin

Giles. Their impact will be far-reaching

IF YOU HAVE a phone, these days even space is within reach. Last year Luke

Geissb hler and his son, who live in Brooklyn, popped a high-definition video

camera and an Apple iPhone into a sturdy protective box with a hole for the

camera s lens. They attached the box to a weather balloon, which they released

about 50 miles (80km) outside New York City, after getting the approval of the

authorities. The balloon soared into the stratosphere and eventually burst. A

parachute brought it to the ground. By tracking the iPhone s inbuilt global

positioning system, the Geissb hlers were able to retrieve the box and the

video of their mission , which shows the curvature of the planet clearly. The

results can be seen at www.brooklynspaceprogram.org.

The iPhone and other smartphones are proving extremely useful on Earth too.

These devices, which let people download and install applications, or apps ,

from online stores run by phonemakers, telecoms companies and others, are

starting to displace ordinary mobile phones in many countries. Ofcom, Britain s

telecoms regulator, recently reported that more than one in four adults there

uses a smartphone. Nielsen, a market-research firm, reckons the devices make up

the majority of mobile-phone purchases in America. Emerging markets are

embracing them as well: in Indonesia, BlackBerry handsets made by Canada s

Research in Motion (RIM) have become a status symbol among the country s

fast-growing middle class.

Sales of tablet computers, though still small, are also growing rapidly. Since

Apple s iPad arrived last year, a host of rivals have appeared, such as RIM s

Playbook, Samsung s Galaxy Tab and Sony s Tablet. All eyes are now on Amazon's

Kindle Fire. With smartphones, which seem to be surgically attached to the hand

of every teenager and many an adult, tablets have opened up a new dimension to

mobile computing that is seducing consumers. Morgan Stanley, an investment

bank, believes that in 2011 combined shipments of smartphones and tablets will

overtake those of personal computers (PCs).

The revolution is mobile

This marks a turning-point in the world of personal technology. For around 30

years PCs in various forms have been people s main computing devices. Indeed,

they were the first machines truly to democratise computing power, boosting

personal productivity and giving people access, via the internet, to a host of

services from their homes and offices. Now the rise of smartphones and tablet

computers threatens to erode the PC s dominance, prompting talk that a post-PC

era is finally dawning.

PCs are not about to disappear. Forecasters expect 350m-360m of them to be sold

this year and the market is likely to keep growing, if slowly. With their

keyboards, big screens and connectivity to the web, PCs are still ideal for

many tasks, including the writing of this article. And they continue to evolve,

cheap, light ultrabooks being the latest in a long line of innovations. Even

so, the Wintel era dominated by PCs using Microsoft s Windows operating system

and Intel s microchips is drawing to a close. The recent news that HP, the

world s largest computer-maker, is thinking of spinning off its PC business to

focus on

A new tech landscape is taking shape that offers consumers access to computing

almost anywhere and on many different kinds of device. Smartphones are at the

forefront of this change. The Yankee Group, a research firm, thinks that sales

of these phones will overtake those of ordinary feature phones in many more

countries in the next few years. But other kinds of machine, from Microsoft s

Xbox 360 gaming console, which allows gamers to contact friends while they

play, to web-enabled television sets, are also helping people stay connected.

In part, this emerging array of devices reflects changes in society. As people

come to rely more heavily on the web for everything from shopping to social

networking, they need access to computing power in many more places. And as the

line between their personal and their work lives has blurred, so demand has

grown for devices that can be used seamlessly in both.

The consumer is king

The rise of tablets and smartphones also reflects a big shift in the world of

technology itself. For years many of the most exciting advances in personal

computing have come from the armed forces, large research centres or big

businesses that focused mainly on corporate customers. Sometimes these

breakthroughs found their way to consumers after being modified for mass

consumption. The internet, for instance, was inspired by technology first

developed by America s defence establishment.

Over the past ten years or so, however, the consumer market has become a hotbed

of innovation in its own right. The polarity has reversed in the technology

industry, claims Marc Andreessen, a prominent Silicon Valley venture

capitalist whose firm, Andreessen Horowitz, has invested in several consumer

companies, including Facebook and Twitter. Now, he says, many exciting

developments in information technology (IT) are appearing in the hands of

consumers first and only then making their way into other arenas a trend that

tech types refer to as the consumerisation of IT.

The transformation may not be quite as dramatic as Mr Andreessen s remark

implies. Armies, universities and other institutions still spend vast sums on

research, the fruit of which will continue to nourish personal technology.

Moreover, this is not the first time that individuals have taken the lead in

using new gadgets: the first PCs were often sneaked into firms by a few geeky

employees.

Nevertheless there are good reasons for thinking that the latest round of

consumerisation is going to have a far bigger impact than its predecessors. One

is that rising incomes have created a vast, global audience of early adopters

for gadgets. Around 8m units of the Kinect, a Microsoft device that attaches to

the Xbox and lets people control on-screen action with their body movements,

were sold within 60 days of its launch in November 2010. No

consumer-electronics device has ever sold so fast, according to Guinness World

Records. These people will absorb new technology on a scale that is simply

quite stunning, says Craig Mundie, Microsoft s head of research and strategy.

The cost of many gadgets is falling fast, giving another fillip to consumption.

Smartphones priced at around $100 after a subsidy from telecoms companies,

which make money on associated data plans are starting to appear in America.

The cheapest Kindle, an e-reader from Amazon, sells for $79, against $399 for

the first version launched in 2007. The cost of digital storage has also fallen

dramatically. A gigabyte (GB) of storage, which is roughly enough to hold a

two-hour film after compression, cost around $200,000 in 1980; today a disk

drive holding a terabyte, or 1,024GB, costs around $100.

The growth of the internet and the rapid spread of fast broadband connectivity

have also transformed the landscape. So has the rise of companies such as

Apple, Google and Amazon, whose main aim is to delight individuals rather than

businesses or governments. Apple, in particular, has been to the fore in the

democratisation of IT, creating a host of impressive devices such as the iPhone

and the iPad. Much of the credit for its success goes to Steve Jobs, who stood

down in August as its chief executive.

Techtonic shifts

This special report will examine in more detail the forces underlying the

reversal in polarity to which Mr Andreessen refers and how they are affecting

individuals, businesses and governments. The combination of new devices with

pervasive connectivity and plentiful online content is raising citizens

expectations of what personal technology can achieve. And it is leading them to

bring their own devices into the workplace, where some of the technology they

are expected to use now seems antediluvian by comparison. This trend is

challenging companies to rethink their IT departments habit of treating

employees as digital serfs who must do as they are told.

The burgeoning global market for smart consumer technology is also inspiring an

outpouring of entrepreneurial energy that will create many more remarkable

products. And it is encouraging organisations of all kinds to adapt innovations

from the consumer world for their own ends. Companies are setting up online app

stores for their employees; hospitals are handing out specially modified

smartphones to nurses; soldiers are trying out tablet computers to control

drones and experimenting with battlefield apps . Many more such opportunities

are likely to emerge as the technological and economic forces behind this

popular computing revolution gather steam.