At the rate Google is going, they will release a Google linux based internet surfing machine where gmail, picassa, google and a few other ‘dashboard’ like widgets (plus a Google browser) take care of all your needs. This won’t appeal to everyone but for 30% of internet users, a PC is just wasted and now that PC’s no longer have cachet – why bother with a virii infected machine when the Google machine is like a toaster oven, plug it in and twist a few knobs. You can produce it now for under $200 bucks and internet/DSL providers can give it away for free with a contract (cable set top boxes cost $300 now so there is a precedent). Monitor extra – $100 or buy your own.

Corporations will still buy cheap PC’s for office terminals, wedding kiosks and cash registers.

Linux will still be thriving for servers and other power users.

Consumers and people who still need the power of real computer will still have Macs and Pc’s though the home Windows market will lose most of its users to Google and a console gaming machine.

But Dell knows this – why else would they invest in Red Hat …

Dell sells computing devices as utilities. Apple sells lifestyle products, and the demand (and consumers’ willingness to pay) is linked to the degree to which those products are “in.”

Apple will not be able to float those numbers once ipods are out of favor. Dell will likely be able to sustain its numbers regardless of consumer whims.

rj