AMAT not mentioned under Investment Implications but it should be:
iAppliances are Changing the Way We Relate to Information, According to Bear Stearns
Analysts Release 152-page Comprehensive Report, Profiling 130 Leading Companies in the iAppliance Industry
NEW YORK--(BUSINESS WIRE)--Feb. 14, 2000-- The convergence of advancement in semiconductor, Internet, software and telecommunication technology, along with the need for ``information velocity' is leading to the emergence of ``iAppliances' -- intelligent, internet-enabled devices and services which could target more than 1 billion users within five years -- according to a 152-page Bear Stearns' industry analysis and forecast by Andrew J. Neff, senior managing director, and William Bao Bean, associate analyst.
The report, which also features profiles of over 130 leading public and private companies, states that the iAppliance industry, which the analysts believe will consist of 1 billion users and will have revenues that could exceed $3 trillion by 2005, will change the way people relate to information and will provide broad market opportunities for new entrants. iAppliances -- which the analysts define as intelligent, Internet-enabled devices and services, made intelligent through embedded semiconductors and software and a connection to the Internet -- will be found in the home, in cars, in hotels or just about anywhere one may need to gain access to the Internet. Information Velocity, the ability to accelerate the access to information at a reasonable cost relative to the value of the information involved, will allow users to easily and intuitively access, manage, and manipulate information anywhere, at any time and in any form -- audio, video, text and voice.
Five Factors Key to Picking Winners
According to the analysts, investors should use five factors to pick the eventual winners: successful iAppliances providers incorporate information acceleration, have an appropriately tuned business model of devices and services, the right management team, provide ``social acceptable' products and services, and have a sustainable competitive advantage. While traditionally it has been easy to differentiate between hardware, software and services vendors, the iAppliance market blurs these distinctions. The analysts agree that no one vendor will be able to deliver a complete solution to the consumer, therefore providers will be required to form partnerships in order to produce advanced products. Essentially, the analysts note, the winners will be those that either provide a key piece of technology or combine various technologies to bring to market a compelling total solution for the consumer.
iAppliances to Look For In The Future
The report divided the industry into the following categories: Mobile/Personal Information Solutions, Consumer Electronics/Entertainment Devices, Connected Home Devices and Solutions, Connected Automobile Solutions and On-the-Road Devices / Solutions for Airplanes, Airports, and Hotels. A few of these devices and services include:
-- General Electric Co. (NYSE:GE - news) is planning the production of a
microwave that will read the bar code on a frozen meal, downloads
the cooking instructions and cook the meal accordingly
-- Airports enabled with wireless access will automatically
recognize users when they enter the facility and proactively
inform them of time to depart, delays, pertinent weather
information and possible options in case of delayed or canceled
flights
-- Global positioning satellite (GPS) locators will utilize
network-based location technology to allow users to access
information such as maps, local services and advertisements based
on their current location
Investment Implications
While the iAppliance market is populated with many small private companies that may go public, the analysts highlighted two existing investment opportunities: Sun Microsystems (NASDAQ NM:SUNW - news), which provides the infrastructure for the networked world, and Ravisent Technologies (NASDAQ NM:RVST - news), which develops intellectual property for digital appliances.
To learn more about iAppliances, or to contact Bear Stearns, please visit our Web site at www.bearstearns.com.
Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC - news). With approximately $22.2 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers professional and correspondent clearing, including securities lending. Headquartered in New York City, the company has over 10,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Puerto Rico and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at www.bearstearns.com
Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. Copyright (c) 2000. All rights reserved by Bear, Stearns & Co. Inc.
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