A recent report suggests that a new breed of ‘information appliances’ could erode the popularity of the PC. The report by Merrill Lynch suggests that the advent of sophisticated mobile wireless devices signals a shift from the desktop concept of recent years to an internet computing environment.
The report lists devices such as videophones, automated driving directions and microwave banking devices as the future of the information appliance. Examples of information appliances already existing include the PalmPilot and Philip Electronic NV’s Pronto, a cutting edge remote control. Merrill Lynch predicts that the features and functionality will increase significantly over the next five years.
The big losers from this shift will be established PC players such as Microsoft Corp and Intel Corp. The report suggests that faced with an emerging appliance market driven by nimble start- ups and consumer electronics giants established companies must adapt or die. Microsoft and Intel are already working to reposition Windows CE and the Pentium chip for the information appliance age according to the report. However, it predicts that companies will have to move to more open methods of working with the decline in dominance of a single PC-based operating system.
