Mobile Internet Forcing Computers to Evolve

PC and laptop manufacturers scramble to adapt to the new mobile Internet era as users turn to handheld gadgets for Web browsing.

Signs that the evolution is underway include Microsoft overhauling Windows to synch the world's most widely used computer operating system with tablets and smartphones as well as desktops and laptops.

The Future of Computing

Gillett described a future in which people go seamlessly from working on mobile devices to desktop stations where tablets can be docked and augmented with sensors, processors, bigger screens and more.

He refers to the concept as "frames" for computing.

The analyst contends that the limping economy is among factors behind a temporary lull in PC purchases destined to end as people "go through this illusion they will do it all on a tablet and realize they can't."

"Tablets will substitute for some, even many, laptops but because a tablet can't do as much as a laptop it will eventually stimulate PC sales," Gillett reasoned.

"What ultimately happens here is that the laptop and desktop get rethought and re-invented for a tablet world."

The market for tablets and smartphones is red-hot, leaving the PC as an afterthought for many. Microsoft, which was the biggest tech firm in 2009 because of its dominant Windows operating system for PCs, has fallen behind Apple and is struggling to remain a major force amid gains by Google and Amazon.

Onetime giants like Hewlett-Packard (IW 500/7) and Dell (IW 500/20) are struggling amid sluggish demand as sales of tablet computers and other devices surge.

However, Enderle pointed out, China-based Lenovo is thriving by selling the gamut of computing devices.

"Lenovo is showing success in all categories, supporting the notion that while the market has more products it is all still personal computing," Enderle said.

"Before we were buying a laptop or desktop computer," he continued. "Now, we are increasingly carrying many products."

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