Smart Devices To Outsell Home PCs By 2001 - Report
NEW YORK (Reuters) - Growing popularity for devices that free users from
desktop computers means that by 2001 these smart appliances will outsell
consumer desktop PCs in the United States, a recent industry report
shows.
Research by International Data Corp. indicates U.S. unit shipments of
information appliances ranging from handheld computers and game machines
to Internet-connected televisions and video telephones will outnumber
those of consumer desktop personal computers by 17 percent in 2001.
With the average cost of these devices below $500, rather than the
$1000-plus cost of PCs, total dollar sales of the smart gadgets are
unlikely to pass that of PCs, according to the report's author, Sean
Kaldor.
But with consumers wanting to get all their information from one screen
and carry their computers in their pockets, Kaldor sees the appliances
ripe for mass market appeal.
The hottest items in this market are Internet-smart hand- held devices
like 3Com Corp.'s Palm Pilots and devices running on Microsoft Corp.
(MSFT - news)'s Windows CE software, the report said. The notebook-sized
devices with fold-away screens and keyboards are the most popular
information appliance, representing about a third of all sales. IDC
expects these hand-held devices to continue to be the most popular smart
appliance in 2002.
In NetTV, the United States' TCI Group Inc., the cable unit of
Tele-Communications Inc. (LBTYA - news), is looking to get into the
service market, Kaldor said. European players in this field include,
Cable & Wireless Plc., Canal Plus and BSkyB Corp., whose main
shareholder is media magnate Rupert Murdoch's News Corp.
Dominating the market for Internet gaming devices are Japans' Sega
Enterprises Ltd., Sony Corp. and Nintendo Co Ltd. These companies have
such a hold on this category they leave little room for vendors like
Tiger Electronics, the report said.
Kaldor raised a red flag on information appliances such as low-cost,
consumer network computers that provide Internet access and
applications. He said this idea has been killed by low cost PCs --
already down to $699 -- and NetTVs that cost $200 or $300.
Kaldor is also less keen on screenphones which have had initial success
but face competition from NetTV. Nortel Networks and Alcatel Alsthom
make phones that provide video images and voice services. Kaldor said
the industry has been waiting for new phones from both companies. He
said their current screenphones are expensive at around $700 or $800
each. He sees NetTvs winning this market because of their superior
screen resolution, screen size and more manageable price tag.
In 1998 IDC expects a total of 5.8 million information appliances to be
shipped worldwide, generating dollar sales of $2.2 billion. The
Framingham, Mass. research company sees that figure rising 76 percent
annually between 1998 and 2002. By 2002 shipments are expected to have
risen to 55.7 million units creating annual global sales of $15 billion. |
