The market’s focus on mobile technology has created a “tipping point” that will separate the digital haves from the have-nots, a Silicon Valley insider told CNBC on Thursday.
Technology earnings reflect how mobile is separating companies focused on desktop platforms — such as Microsoft and Intel — with companies that are leveraging mobility, such as Facebook and Yelp, said Dan Rosenswieg, CEO of Chegg, an online textbook marketplace.
“Companies that are really focused on being on multiple devices…whether it’s on the PC or on mobile, are really accelerating their growth,” Rosensweig told CNBC’s “Squawk Box.” “The other companies are just looking through the rear-view mirror.”
The shift away from traditional computers to mobile devices is “going to be extremely pronounced in the next couple of years,” he added. “The PC is just not a part of the current generation’s vernacular.”
Increasingly, consumers “live their lives on their cellphones, they live them on smaller screens,” Rosensweig said.
Rosensweig said that capitalizing on the mobile trend reminds him of when the internet was still young. Advertising agencies wanted to boost their presence online but simply “didn’t know how to do it,” he said.
“Mobility moves so much faster than the ad companies can monetize. But that’s just a matter of time,” he added. Facebook is a good barometer of momentum in this space, Rosensweig stated: where revenue per user is increasing, it suggests that mobile is catching on.
Billions of dollars are being spent in online advertising today, but the big money has been concentrated on the bigger players, Rosensweig said.
“The tipping point is interesting. I think the world has tipped and we just don’t understand it yet,” he added. “It literally is all about mobility. Companies that are focus on that, they are are the ones that are winning.”