Hello Compute Stick; Goodbye PCs

Steve Kanaval |

The divide between the baby boomers and the text generation drew another line in the sand today as Intel (INTC) announced they have a Flash Drive size stick that will hold an (OS) with Windows 8.1 plus 25GB memory and enough power to drive a monitor on its own. This means that you will have the ability to plug the computer stick into a HDMI slot on any monitor and wirelessly access the internet to perform normal tasks using the software you use on your PC, Tablet or cell phone. This essentially will drive sales of the personal PC to its grave, and it isn’t surprising considering that 15% of global users ONLY use their cell phones to perform functions like Facebook (FB) , email, text, Snapchat, or Netflix (NFLX) .

The market is about to explode with an extension of the Chromebook, which allows you to perform many functions and is a $200 laptop for those transitioning from the PC.  The explosion will occur in these HDMI sticks that you can plug into your monitor and it has everything, including an OS, Graphics Card, 2GB of RAM, 32GB of storage, an Intel Quad Core with 1.83 GHz Atom CPU, which is the same as in many small tablets and cell phones. Intel will also introduce new and more powerful Mini PCs the size of an alarm clock that can function like a super fast gaming computer.

The Death of PCs

It occurred to me how the 25-35 age demographic (I call them Text Gen) is pushing the death of the Home PC to an early grave. Now it will never be the end of server-based businesses because of security and cost for many small business operators who are 35+ and will operate using PC-based Quickbooks and other software they integrate into daily functions, but the Computer Stick will allow any monitor with an HDMI port to be a fully functioning computer with keyboard and mouse and the ability to do anything needed to run just about any software.

I also noticed Intel will start to break out the way it tracks it’s own internal sales numbers for chips so they decouple loss-leader chips manufactured for PCs and breaks it down by mobile and in its April 14 reporting cycle will merge the chip results of the PC and Tablet.

Disruptive Computing

Computing as we know it changed when a generation of text only decided they no longer needed to talk on the phone or sit at a laptop or PC to perform functions they wanted to live and work. A combination of Moore’s Law, which says that every 1.5 years the computer chip is 2x faster (which means it is half the size) allows us to have computing power available for all the tasks we need. Now this is functioning on a computer stick with everything you need to plug into a monitor when not using your smartphone.

The Text Gen age group watches nearly all content on phones, games on the cell phone for entertainment, talk to friends via social media and record their lives all with one device and the trend doesn’t seem to be changing anytime soon, You can always tell when the large companies change the way they keep track of sales – and that day has come.

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Companies

Symbol Name Price Change % Volume
FB Facebook Inc. 117.68 0.37 0.32 16,596,095
INTC Intel Corporation 35.50 0.78 2.25 14,229,552
NFLX Netflix Inc. 125.38 0.81 0.65 6,767,242
MSFT Microsoft Corporation 61.21 1.26 2.10 19,598,745

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