"In several articles (here, here, here, and here) we have been pondering the future of Intel (INTC) and Microsoft's (MSFT) Windows, both companies have seen their core market, personal computers, coming under threat from mobile and hybrid devices working with processors based on the design of ARM (ARMH) and operating systems from Apple (AAPL) and Google (GOOG).
"We have described how Intel and Microsoft are fighting back to get more traction in these new mobile and hybrid markets, but we weren't too optimistic. There is considerable momentum behind iOC and Android, and some network effects, complicating the life of Microsoft. CPU's based on ARM designs are, at least up to now, cheaper and more energy efficient than those of Intel.
"What we haven't mentioned yet is that Android is also invading into the territory of the PC and laptop. Well, we did marvel at the upcoming Asus Transformer (the hybrid that defined the category of hybrids, that is, an ARM/Android based tablet, but it has a base with more connections, a second battery, and a keyboard, clicking them together delivers a laptop, sort off), but there is more going on here.
"On a smartphone and a tablet, the ARM/Android combination provides a useful "computing" experience for most users. One can surf the web, watch videos, communicate, and there are a growing, and already bewildering amount of applications (apps) that can do all sorts of things.
"The first thing to note is that for an increasing amount of people, this is their first and/or most important computing experience, and that experience is making people less hungry for buying laptops and desktops, as the declining sales testify."
There is much more. Please see the original article....