In this short video, Diamandis explains the word “dematerialization” which I think I am going to steal. I’ve referred to this concept in the past as “convergence”, “emphemeralization”, “digitization”, or even “computerization”, but I think I like “dematerialization” better.
“The fact of the matter is, that into your cell phone, is dematerializing a lot of the things we used to have in life. Think about it. I don’t have a GPS for my car anymore. It’s in here. Nor do I have an HD camera, my HD video camera, my music library, all of these things are literally dematerializing into your cell phone.”
In other words, all products are converging into essentially one product: the portable computer. Just last night I saw three commercials in a row, and every single one of them was for cell phones or tablets! Needless to say, a lack of diversity of products to sell probably means less economic opportunities for people over the long run. It is going to be very hard for companies to keep generating demand for things that your cell phone and some free apps aren’t already doing, or aren’t about to start doing in the near future.