Myhrvold then turned to what he called “the truly personal computer—something which has the size and weight appropriate to be carried with you at all times.” This wireless “digital wallet,” as he called it, would allow anyone to communicate, untethered to a wire, by voice, video, fax, E-mail, or pager. The device would be a clock, an alarm, a schedule manager, a notepad, an archive of phone numbers and records, and a library of music and books. The digital signature produced by this wallet would have a personal I.D. for security, and could replace cash, credit cards, checks, and keys. He believed that the obstacles were economic and human, not technological. “The cost will not be very high—it is pretty easy to imagine a total cost of manufacture in the range of $100 to $250 on introduction, which means $400 to $1000 retail price,” he wrote.

Well, it probably took a bit longer than expected, but that pretty much describes the smartphone and where it's headed.