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Originally Posted by mr_Ray
I get the feeling that Windiws Mobile will in 5 or so years time be starting to move towards being a phone OS, with the main Windows OS moving down as low as today's PDA size devices. Another 5 and the transition will be complete.
Remember, this is just a concept device. OEMs playing around with the form factor and a few years of advance, building on the real world 'practice run' OQO, introduction and adoption of Microsoft's resolution independent interface... as much as I love my PPC I see them gradually being phased out. The draw of having a pocketable 'real' computer is going to be very very strong.
I also just realised - this is probably the only chance we have of a Pocket PC with a proper close application ability. 
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I agree with you here....
in the next 5 to 8 years, we will have either "pocketable" (or somewhat close to) computers running full blown desktop OS'es like in the picture and Windows Mobile platform will be little more the a super cool smartphone OS or we are going to see Windows Mobile / Windows CE become a super powerful platform that will grow beyond handheld phones and the basic PDA form factorand functions taking on real laptop and tablet mobile computing abilities with real software to take advantage of it's use (not like the crippleware we see today that still requires to be sync'ed to a desktop PC to get your data into the real world).
I believe one of the two out comes will happen. The business world is pushng harder and harder for smaller pocketable computers that can essecentially be their desktop on the go, while Windows Mobile is trying to find it's acceptance amongs mobile phones, even though Windows CE is powerful enough to be it's own desktop OS - it Just depends where Microsoft will push the future.