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IACS will be top sellers: report
By Jon Newton, p2pnet.net
(more articles from this author)
2002-01-18
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Music Industry News - as it happens
Source: Mi2N - January 14, 2001

The world market for IAC's (Internet Access Devices such as PCs, mobile phones, Net set top boxes and Internet and smart appliances) will grow annually by about 41.6%, in unit terms, between 2000 and 2005, states Cahners In-Stat/MDR, a high-tech research firm. Cahners says the PC and mobile phone segments currently comprise just over 93% of the industry and will continue to represent the majority throughout the forecast period. While the PC and mobile phone segments will have the greatest unit shipments, smart appliances will have the highest Compound Annual Growth Rate (CAGR) at 100.8%.

But, "Despite our optimistic forecast for this market, there are still several factors affecting all of its individual segments," warns company analyst Cindy Wolf. "In the coming years many of these product segments will face increased competition from each other as device functionality converges."

Cahners also says:

* Though the personal computing device market has taken a beating this year, new products and operating systems will stimulate demand in the coming years.

* Consumers are hesitant to switch to Internet-enabled phones due to security fears, price concerns, and the lack of compelling applications.

* Internet set top boxes are confronted with challenges in broadband penetration, consumer education, and operator business models.

* The Internet appliance market has seen the exit of many players primarily due to price and application issues, but there appear to be opportunities in vertical markets.

* The smart appliance market is being hampered by a lack of standards, high prices, and a lack of consumer education on how the products add value.

Related News from Mi2N:
» Internet Access Device Market To Grow 41.6 % In 5 Years – Smart Appliances To Lead In Growth


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