"The device most suited to convergence is the PC," proclaimed Intel Capital president Arvind Sodhani when he met with editors and writers at The Deal earlier this week. Sodhani defines convergence as "the ability to download video, music and other audio clips on demand anywhere, any time you want them — and be able to pay for them if the owner wants you to." Towing the chipmaker's party line, according to Sodhani, there are only two convergence devices: "A PC and a small PC."

A new crop of "small PCs" is expected later this year and early next. Called mobile Internet devices, or MIDs, the handhelds will be based on Intel chips. The idea — unveiled at the chipmaker's developer conference in Beijing in April — is to deliver a PC-like Internet experience, complete with Web 2.0 features such as speedy video and social networking, in a light, take-it-with-you package sporting a high-quality display and a keyboard you can actually type on. Manufacturers include Sony Corp. and Samsung Electronics Co. Ltd., and prices will be under $500, according to Sodhani.

If MIDs are as popular as Intel hopes, they will be a huge boon to Kyte.tv, TargetSpot Inc. and the other digital video startups highlighted in Tech Confidential's special report on convergence in this week's issue of The Deal. If they aren't, they'll keep PDAs company in the burial ground for handheld flops. —Mary Kathleen Flynn

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