From: CNet.com —

Industry analysts warn that the line between computers and smart phones continues to blur — and the ultimate result is more likely to be a violent collision than an amicable merger.

As CNet.com’s Brooke Crothers reports, “This will happen as more tweener products emerge. ‘New product categories such as Netbooks, MIDs (mobile Internet devices), and smartphones all lie in the spectrum between the traditional PC and handset product categories,’ [Doug Freedman, an analyst at AmTech Research] wrote. ‘Cell phones are increasing in screen sizes, computational power and capabilities, while PCs are seeing declines in screen sizes and increases in connectivity.’”

As a result, PC makers and phone makers will race to create the next generation of ‘tweener’ products and carve out as large a chunk of that market as they can.

Down the road, Freedman writes, in a research note, “We do not expect the PC and handset to converge into a single ‘holy grail’ device.” PC and cell phone makers will continue to build devices that try to bridge the gap. Apple’s iPhone is an example of a device at one end of the spectrum, while the 10-inch Asus Eee PC Netbook addresses the other end. … We expect most users to continue to require two devices: one large form factor device and one small form factor device.”