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Bluetooth Showing Solid Growth In 2002
With Improving Longer Term Prospects, According To Allied Business Intelligence Report
OYSTER BAY, N.Y., Aug 15, 2002 - Bluetooth has survived its baptism by fire and appears
poised to fulfill much of its considerable potential, evidenced by steady market growth in 2002.
Allied Business Intelligence (ABI) projects Bluetooth chipset shipments to increase to 33.8 million in 2002, up from 11.2
million in 2001. In the longer run the Bluetooth semiconductor market is forecast to grow to just over 1.1 billion chipsets
by 2007, with associated revenues of $2.54 billion.
In retrospect many of the problems encountered in 2001 were those that ABI had cautioned about. Probably the single
biggest issue with the Bluetooth story was hype. However, the hype in the Bluetooth space has largely been replaced by a
far more pragmatic perspective, with an understanding of the technology's limitations. Other problems have also been
alleviated. The Bluetooth 1.1 specification is fairly stable, interoperability issues are far fewer, and aggressively priced
chipsets are available from several vendors.
"Given the commitment of the mobile handset vendors to Bluetooth we expect cell phones to account for approximately
two-thirds of the projected 27.8 million Bluetooth devices that will ship in 2002," said Navin Sabharwal, Director of
Residential & Networking Technologies and report author. "However, 2003 should see volume shipments ramping up
across a number of other market segments. This will serve to create more diverse and compelling usage scenarios for
consumers, and will result in significant network effects."
The ABI report "Bluetooth - The Global Outlook for Bluetooth Component and Equipment Markets" examines the
evolution of Bluetooth technology, analyzes potential overlap with other wireless technologies, forecasts the IC market
and segments Bluetooth device shipments into 15 categories. While mobile handsets are set to dominate the Bluetooth
device market the report notes that other key Bluetooth device categories will include cordless headsets, computing
devices and the automotive market.
On the component side the availability of sub-$5 Bluetooth chipsets (and eventually complete solutions) will be aided by
increased IP licensing and RF-only solutions that obviate the need for a dedicated Bluetooth baseband. The fierce
competition in the Bluetooth IC market, and the resulting innovation, will serve as a key market catalyst. With major
semiconductor houses determined to have a stake in the Bluetooth market the competitive landscape will be subject to
critical changes impacting the inevitable industry shakeout.
Allied Business Intelligence Inc is an Oyster Bay, NY-based technology research think tank that publishes research and
technology intelligence on the wireless, broadband, electronics, networking and energy industries. Details can be found at
www.alliedworld.com or by calling 516-624-3113.
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