Disposable Tech: The New Frontier

Most market participants have spent the past year worrying whether or not the financial world would end and where we are in the recession. As investor thinking has been consumed by the macro events, little thought has been spent on disruptive shifts in technology, the primary reason is that concept themes rarely pay off during bear markets.

As markets improve, investors will begin to shift focus to other areas: one is the next phase of the digital media revolution, which is currently under way. This revolution is based on the simple fact that technology is disposable and the next phase will be about consumers managing and protecting their content, both personal and purchased, as a part of everyday life.

Today, the winners vs. losers from the first generation of the Internet age are clearly delineated by those who are still in existence and those who are not. In a world so driven by technology, we must remember that one of the best and worst aspects of technology is obsolescence.

Companies that continue to innovate always have the next product cycle; those that do not fall by the wayside. Simply, think about how many computers and handhelds you and your family have gone through over the past decade, both in the office and at home.

Broadband Internet access is mainstream, and the wide majority of laptops sold at conventional retailers like Best Buy(BBY Quote) are less than $1,000, with many less than $500.

Essentially, computers are becoming as commoditized as TVs and may already be there. The significant difference is that the TV is a delivery platform for content someone else owns. Computers are a delivery and storage platform for content that others own as well as content you own.