Information Appliances: Add-on Devices Will Surpass New Devices

Buffalo Grove IL, December 12, 2000-
Information and Internet appliances will be a huge market opportunity. However, the largest market will not be new devices, but existing products that add web access to their current functionality. Web access and PC functionality are now added to many existing high-volume products such as cellular phones, set-top boxes, VCRs and video game players. These high-volume products allow the IA device market to grow at a phenomenal rate. The web-enabled cell phone has become the volume leader due to success in Japan and other Asian countries. In the USA, web cellular phones will be slower to take off than the current hype may indicate. Until wireless-specific web content appears, a significant portion of web-enabled cell phones will not have a web access service.

New IA devices will also do well, but like all new segments, they require several years to reach volume productions. New IA devices are dominated by PDAs, but also include handheld computers, web terminals and web pads. Web terminals are having trouble competing with low-end PCs and will require another generation of products before they reach market take off.

"The reason that add-on web appliances will have such spectacular growth is that cost issues, customer familiarity and infrastructure favor this approach," says Dr. Egil Juliussen, the author of the report.

These are some of the results from a new information appliance market research report by eTForecasts. The report explores technology trends, product segments and market opportunities and gives the reader an understanding of how information appliances are likely to evolve, geographic differences and how they will affect existing markets.

eTForecasts publishes market research reports for the PC and Internet industries.