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Colleagues,

As reported in New York Times ... Emboldened by Apple’s success with its iPhone, many PC makers and chip companies are charging into the mobile-phone business, promising new devices that can pack the horsepower of standard computers into palm-size packages...

The new smartphones promised by PC companies will, among other things, handle the full glory of the Internet, power two-way video conferences, and stream high-definition movies to your TV.

Acer, the big PC manufacturer, has gone from offering no cellphones to selling eight new models, with more to come this year. Dell has also worked on prototype phones but has not committed to making a new product. And Asustek, the company that was first to market ultraportable laptops known as netbooks, has new smartphones coming.

The suppliers to the PC industry have also started shifting to the new market. Intel announced a deal to supply the cellphone maker LG with chips for new mobile devices. Nvidia, the PC graphics-chip titan, signed a deal to provide three smartphone makers — which supply handsets to brand-name manufacturers and carriers — with its new Tegra processor.

...Nokia, the world’s largest cellphone maker, has said it is weighing whether to get into the PC business.

The convergence of the two devices has long been predicted... Acer hopes to ride its success selling laptops and netbooks into the mobile phone market ... It is working on software that will link all of its portable products together, synchronizing e-mail, contacts, media files and other information among the products. This could open up a way for carriers to sell more wireless 3G data services to consumers, since they could offer a single plan covering multiple devices.

At the same time, the phone market has been bombarded with operating systems from Microsoft, Google and Intel.

This gives companies like Motorola and Nokia an entirely new set of problems besides falling sales and shrinking margins.

“It’s cataclysmic for the phone guys, who were used to playing golf on Wednesday afternoons,” said Roger Kay, president of Endpoint Technologies Associates, a research firm. “Those times start to look pretty good now.”

Read on at: http://www.nytimes.com/2009/03/16/technology/16cell.html?_r=1&t...

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