Monday May 4, 8:00 am Eastern Time
Company Press Release
SOURCE: International Data Corporation
Worldwide Internet Screenphone Market to Reach 9.5 Million Units by
2002, IDC Study Finds
FRAMINGHAM, Mass, May 4 /PRNewswire/ -- The global Internet screenphone market will reach 9.5 million units by
2002, representing $2.2 billion in market revenues, according to a recently completed report by International Data
Corporation (IDC). The enormous growth of this market has already exceeded initial expectations, surpassing one million units
in 1997, the study found.
''While the expansion of this market has been explosive, we believe the path to future growth is paved with many challenges
that have thus far been troublesome for most screenphone vendors,'' said Sean Kaldor, vice president of IDC's Consumer
Devices research. ''Although Northern Telecom has excelled to become the market leader with its PowerTouch product line,
and CIDCO's new iPhone is shipping in reasonable seeding volumes, most early vendors are either in deep financial trouble or
withdrawing from the market.''
IDC splits the Internet screenphone market into four product categories: low end; midrange; high end; and videophone
devices. Although the most exciting and technologically stunning products have been coming out in the high-end category, IDC
forecasts the majority of the volume opportunity to exist in the low-end and midrange spaces.
''CIDCO/InfoGear, Alcatel, Philips, and Nortel have exciting new products or great product concepts,'' said Kaldor. ''But
the lower price points and targeted functionality of products similar to Casio PhoneMate's IT-380 or CIDCO's CST-2100
will likely be able to achieve higher product volumes in the near term. In the longer term, as prices drop, our surveys indicate
the screenphone is an excellent form factor for consumer communication activities.''
Vendors are aware building the market will likely be a long, hard battle. This study indicates the successful vendors are staying
focused on partnering with service providers and powerful value-added services to generate interest in the devices themselves.
''Ultimately, for the Internet screenphone market to flourish, these devices must also be top-quality telephones at affordable
prices. CIDCO and Nortel both understand this, which is why their products currently are number one and number two
globally,'' said Kaldor.
Many vendors today are pushing to win the core technology battle for Internet screenphones, especially from the
semiconductor and the operating system perspectives. After extensive interviews with vendors and a review of consumer
needs, IDC forecasts a highly segmented market for screenphone technology suppliers.
''Sun Microsystems' Java family definitely has the edge over Microsoft's Windows CE family based upon current vendor
plans,'' said Kaldor. ''But in the big picture, no single O/S supplier has a sizable share of the market. It's an open battle that
will likely continue to fragment for years to come,'' said Kaldor.
IDC's report, Review and Forecast of the Worldwide Internet Screenphone Marketplace, 1997-2002, (IDC #B15860) is a
detailed analysis of the products, vendors, technologies, strategies, and customers surrounding the screenphone opportunity in
the United States and globally. ''IDC has been at the forefront, analyzing this new market. This study represents the most
detailed analysis currently available in the marketplace,'' said Kaldor.
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