Letter Never Sent Tell me when to go.

In a few short years, the “smartphone” will be the de facto personal computer: connected, mobile, and fully integrated into Life. Desktops will never go away completely, but 90% of what you do will be done from your phone: email, photography, video, voice, instant messaging, music, gps and mapping, web surfing, etc. All of these things are currently possible with existing products such as the Blackberry and the Palm Treo. The smartphone platform will succeed because it frees you from your desk.

This will lead to a huge shift in business and in life. Already the boundaries are blurring between work and home life. With ready access to the Internet, workers are bringing life into the workplace and the workplace is bringing work into the rest of your life. Rules and custom will adapt to meet this new reality. Ultimately, I believe it will foster a flexibility and connectedness that will be good for both employees and business.

There is a war brewing to see who will ride the wave of society’s shift toward full mobile computing. It will be interesting to see how the landscape changes. In ten years, I think we will always be connected wirelessly through our personal communication device. It will likely still be called a ‘phone’, but it will do everything you need. It will integrate with various systems at work, in the car, at home, and everywhere else. Desktop computers may exist only as specialized devices to amplify computing power or display output. Your personal device will connect to larger screens, full keyboards and specialized input devices, as well as networked cameras, sensors, and storage. But, all your files will exist in one place and your phone will be your tether to the rest of the world.

The necessary conditions for this shift:

1. Ubiquitous high-speed Internet access: Wifi, EVDO, EDGE, Ultra Wide Band, etc. networks will eventually connect everyone.
2. Networked and online storage.
3. Mobile apps: web 2.0 stuff like Gmail, Flickr, etc. and specialized apps built for the smartphone.

Some businesses are in better position than others to benefit.

The businesses on offense:

• Smartphone companies, primarily Research in Motion – The maker of the wildly successful Blackberry is in good position. They’re very competitive and have made it easier for developers to develop products for the Blackberry. They’ve also continued to add good features like built-in GPS, camera, and media capabilities. They’re the current 800-lb gorilla and their margins are superior since they build everything in house rather than outsourcing to third parties.
• The cellular carriers: Verizon, Cingular (AT&T), and T-Mobile – Any mobile computing scenario will depend on the carriers. I think more people will move to broadband-over-cellular versus WiFi. A cellular Internet connection is persistent, more secure than WiFi, and personal. No need to find hotspots or worry about someone sniffing your WiFi traffic. It’s ideal for mobile computing and complements the current cellular voice network.
• Microsoft – Windows Mobile is rapidly becoming the default OS for commodity level smartphones like the HTC handsets. This could be the entry point for many consumers.
• Google / Yahoo! – Both Google and Yahoo! have been very supportive of mobile computing. Google has produced several applications especially for smartphones including versions of Google Maps, Google Reader, Gmail, and Google Talk. Any web company who caters to handhelds will stand to benefit.

The businesses on defense:

• GPS device manufacturers – GPS is quickly becoming a commodity product. Soon GPS chips and software will be available on all phones, cameras, video cameras, etc. Grabbing GPS coordinates will just be another basic function, like a temperature reading. Why carry multiple devices when you can have one that integrates into everything else? Companies like Garmin and TomTom are already anticipating this shift and are trying desperately to enter the smartphone market. They are unlikely to be successful.
• Apple – Apple created one of the first truly successful mobile devices, the iPod. The iPod did not succeed because it is the best device ever, it succeeded because Apple was the first serious company to really get behind downloadable music. They sensed the consumer appetite and they bet on it. I remember back in the old days when you had to find a CD player that would play mp3’s. No one really took it seriously even though people had been downloading mp3’s since 1996-1997. Apple saw the potential and moved in before anyone else. This is why they succeeded, not because they make the best products in the world. Everyone else was just asleep at the wheel after the fall of Napster. Apple is extremely vulnerable right now. They have the same problem the GPS companies have in that their bread and butter is quickly becoming just another application. When you can get your music and video on your phone or over the network why would you use Apple? The iPhone is pretty, but I think it will be a marginal success at best. Unlike with mp3 players, the smartphone market is very competitive. Apple had to ‘redefine’ the device to keep from looking like a late arrival, so they added a touch screen. While being a creative interface, it is nothing more than a gimmick. The iPhone is a toy aimed at consumers. At this point, it is not serious.
• Low-end camera makers (point and shoot) – Like with GPS and media capabilities, photography and video are becoming just embedded capabilities. The camera will just be another sensory input on your phone. Already, the high-end smartphones provide 1.5-2 megapixel cameras built-in with flash and zoom. People are becoming accustomed to taking photos and shooting them to friends or across the web.
• Handheld game makers – Most people want basic games. In a mobile setting, these games will be played on smartphones. Already several game companies like Magmic are specializing in developing games for the mobile environment.
• Satellite anything – Satellite radio, satellite internet, satellite television is too expensive to launch and too difficult to upgrade to newer hardware. It’s much easier to just expand network coverage to where 90% of the people are. As soon as cars are connected to the wireless cellular networks with access to the Internet and media, they will replace satellite-based alternatives. Satellite radio is already starting to receive competition from terrestial broadcasters in the form of HD radio. The sound quality of satellite radio is notoriously bad. Add online radio to the mix and they’re doomed. I have a feeling satellite radio subscriber numbers are heavily inflated given that I cancelled my XM radio account over a year ago and yet it still miraculously works. In light of this shift to “connected media”, the recent royalty increases for online broadcasting make sense as barriers against non-commercial players.

In conclusion, any business that is not connected to the central personal communication device (the “phone”) and to the network is vulnerable. It’s very difficult to accurately predict the future, however I believe the trend to mobile computing that started with laptops and iPods will culminate in a fully portable, connected voice, media and data device.