We're already seeing that effect in chips, somewhat. The market has gotten to the point where relatively cheap chips are good enough for most people's purposes

We're already seeing that effect in chips, somewhat. The market has gotten to the point where relatively cheap chips are good enough for most people's purposes -- looking at webpages and viewing streaming video on a mobile device. You don't need a top of the line Intel chip to do that; a cheap ARM clone is fine. There is still a higher end driver in the server space, though, as virtualization progresses... How many virtual machines can you fit into one box?