NEC Corp and NEC Design Ltd, Tokyo has redefined the future of computers and how it could be shaped. Presenting the pen computer, an innovative concept of integrating a computer into a pen. Called the P-ISM, the NEC designers describe it as a “Pen-style Personal Networking Gadget Package”.

P-ISM is a “pen-computer” package including five functions: a pen-style cellular phone with a handwriting data input, virtual keyboard, a very small projector, camera scanner, and personal ID key with cashless pass function. P-ISMs are connected with one another through short-range wireless technology. The whole set is also connected to the Internet through the cellular phone function. This personal gadget in a minimalist pen style enables the ultimate ubiquitous computing.

I could see tremendous usability for this but may take a while to break into the traditional realm of physically having a keyboard and screen in front of you. This has been in the works for a few years now. Unveiled at the 2003 ITU Telecom World with a rather low key presence, the prototype of the system cost a reported $30,000 to build.
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Source [NEC Design]