In-Stat: Internet-centric devices to reach 790 million by 2006

By Bernard Cole
iApplianceWeb
(01/13/03, 12:56:24 PM EDT)

San Jose, Ca. -- Despite the current doldrums, the market for Internet-centric computing devices is expected to reach 790 million units world wide by 2006, according to a just released study by market research firm Instat-MDR, an annual growth rate of 28.2 percent.

Included in its defintion of such Internet access devices are personal computing devices, mobile phones, Internet-enabled STBs, small footprint mobile Internet-centric appliances, smart home appliances, and white goods.

According to In-Stat, growth is expected to rise to over 790 million units in 2006 from about 226 million units in 2001. Although the PC and mobile phone segments represent the greatest percentage in terms of unit shipments, Internet appliances, which include Internet terminals and Tablet PCs, will have the highest CAGR over the period, with 74.3 percent.

"There are various issues that affect the market for Internet access devices," said Cindy Wolf, an analyst of with In-Stat. "Some of the most important issues, which vary by device, include, Internet penetration rates, broadband availability, wireless networks, home networking, education, and price. In addition, many of the Internet access device product segments will face increased competition from each other, as device functionality converges in the coming years."

Further, the market research firm predicts that Internet-centric notebook and PDA growth will outpace growth in the PC category. That segment, the report says is poised for growth as the number of products being introduced with integrated functionality increases.

On the other hand, as Internet-capable mobile phones, including smartphones, are already being offered in a variety of forms, applications are said to become even more attractive, In-Stat said. This will be the result of network services, OSs, and displays being further improved to support them.

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