Via Fortune Magazine, IDC reports that Smartphone sales has exceeded Personal Computers (PCs) for the first time in Q4-2010.  IDC also projects that Smartphones will expand its lead within the next few years with smartphone prices dropping rapidly and this has huge ramifications for several industries.  What we think of as “computers” and “broadband” will have to undergo some radical revisions.

Some of the obvious shake ups will be:

• Microsoft and Intel “Win-Tel” architecture faces a tremendous threat from Apple, Google, and ARM based hardware and both companies are desperately working to penetrate the Smartphone or at least Tablet space.
• Microsoft Windows 8 will add support for Intel or AMD System-on-chip (SoC) systems and even ARM based hardware.  Intel will ship SoC solutions like Moorestown to try and penetrate the Smartphone or at least the Tablet space.
• ARM based vendors will continue to develop more powerful processors and Apple and Google will continue to improve their mobile operating systems.
• Mobile broadband will grow rapidly and perhaps even replace fixed broadband in some instances just like mobile phones have replaced fixed lines.
• When smartphones and tablets drop to $100 to $200 in unsubsidized pricing, it could easily close the computer gap for low income users.  When we’re no longer limited to tiny 2.5″ screens and the devices have 3″ to 10″ high resolution screens with the ability to add external keyboards and output to HDTV screens, the difference between a smartphone and “computer” becomes irrelevant.
• Single device mobile broadband plans that cost as little as $15/month could close the broadband gap for lower income Americans.

The stakes are high but these are some exiting new times for digital economies.