Monday, November 1, 2010, AM | 2 Comments
Steve Jobs of Apple, Inc. once said “I want to put computer in everyone’s home.” That was almost 30 years ago. Today, the trend is to put a mobile device that combines features of a computer, Internet Access and phone in everyone’s pocket. You can then be able to do all those things and more anywhere and anytime, at your own convenience. You don’t have to run back home from the shopping mall just to email your family and friends. Those days are gone and well behind us.
Go pocket, young man!
Instead of saying “Go west, young man!”, the mantra today is “Go pocket, young man!” Your home contents have moved to the inside of your pocket. When we bought our house almost 4 years ago, we set up our desktop computer in a room on the first floor. We call it the computer room. In four years, so much has happened in personal technology, that our computer room – if it were up to my kids – will become obsolete. No more desktop, no more laptop. For some, the transition from home to pocket has already happened. Being an old-fashioned guy, it will take me a good 5 years for the transition. Even then I don’t suppose it will be 100% for me.
The Mobile Device…
There are so many mobile devices that you can choose from and that will fit in your pocket. Each one has some functions that others may not have. For example, Apple iPhone, Motorola Droid, Amazon Kindle or Barnes & Noble Nook, or personal assistants of different nature, all can fit in your pocket. Kindle and Nook are what is known as eReaders where you download anything text – newspapers, magazines and online digital information – and read at your convenience. Sony has a Book Reader as well. EReaders don’t fit the topic of this post.
Wikipedia defines Droid as an Internet and multimedia enabled smart-phone which runs Google’s Android operating system.
Customization and Personalization of information
Replacing the telephone, e-mail, and perhaps even television seems to be imminent. There is no getting around that. Along with that, content production is a multi-billion-dollar endeavor with advertising at its forefront.
Are they good for investment?
Bernstein Research did a research paper “The Computer in Your Pocket: Industry and Investment Implications”. It estimates projects that demand for mobile bandwidth will expand by a factor of 45 over the next five years. Such explosive growth presents a tremendous opportunity for a wide variety of firms, from computer hardware companies to entertainment producers.
If you search for Technology, Telecommunications, Communications Equipment, and Multimedia Portfolios, you will find mutual funds catering just those markets. The managers have been looking for opportunities to expose their funds to the growing popularity of mobile broadband.
In a Nutshell
Who[m]ever is doing all three – Technology (Computer), Internet and Telecommunications what I call TITs in one pocket-size device and is marketing them effectively will be the winner. However, to minimize potential losses, mutual funds in these sectors might be the way to go.