Gordon E. Moore, in a 1965 article, described a trend in the history of computer hardware, paraphrased here: "the number of transistors that can be placed inexpensively on an integrated circuit has doubled approximately every two years."
Moore's Law has continued for more than half a century and is not expected to stop until 2015 or later. (I didn't think we used transistors any more?) In fact, many capabilities of other devices are strongly linked to this law: processing speed, memory capacity, even the size and number of pixels in digital cameras--all of these are improving at exponential rates.
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