Smart devices soar

Although the forecasts are enticing for Web-based devices, there are still unanswered questions about distribution While we're starting to see a variety of devices offer Internet functionality, there are still unanswered questions concerning distribution channels and business models for these devices and their accompanying services, according to IDC. Although the forecasts are enticing, vendors still have to prove they can produce desirable products with the right designs, features and

Although the forecasts are enticing for Web-based devices, there are still unanswered questions about distribution

While we're starting to see a variety of devices offer Internet functionality, there are still unanswered questions concerning distribution channels and business models for these devices and their accompanying services, according to IDC.

Although the forecasts are enticing, vendors still have to prove they can produce desirable products with the right designs, features and prices, says Kevin Hause, director of IDC's Consumer Devices program.

Looking at the whole picture of information appliances, including smart handheld devices, worldwide shipments should soar from 11 million units in 1999 to 89 million units in 2004, according to IDC's Review and Forecast of the Worldwide Information Appliance Market.

The value of worldwide shipments of information appliances will jump from US$2.4 billion in 1999 to US$17.8 billion in 2004.

IDC expects the categories with the largest unit shipments in 2004 to be NetTVs, Internet gaming devices and Internet smart handhelds. Other information appliances include Web terminals, e-mail terminals, Internet screen phones and "other," such as Web-based devices in automobiles.

In the smart handheld device (SHD) category, which includes personal companions, PC companions, smart phones and other devices primarily used in vertical markets, IDC predicts there will be a shift in the population between handheld companions and smart phones.

Whereas last year about 65 per cent of worldwide shipments were handheld companions, this percentage should fall to 54 per cent by 2003 with the emergence of more smart phone solutions, according to Size Matters: The Worldwide Smart Handheld Devices Market Review and Forecast, 1999-2003.

As early as 2002, IDC predicts U.S. shipments of consumer information appliances, which exclude smart handheld devices, will outnumber shipments of PCs that are used in the home. However, PC shipments will continue to outnumber those of any individual information appliance segments.

Consumer device suppliers can learn some valuable lessons from the less-than-speedy start encountered by smart phones, says IDC. Smart phone makers had to spend much of their efforts last year regrouping and preparing for 2000 and beyond.

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