To: Proud_Infidel who wrote (43428 ) 3/9/2001 3:48:35 PM From: Proud_Infidel Read Replies (1) | Respond to of 70976 Internet appliance market to hit $39 billion by 2006, report says Semiconductor Business News (03/09/01 11:14 a.m. PST) OYSTER BAY, N.Y. -- Despite some early setbacks, the Internet appliance market is expected to hit $39 billion by 2006, according to a new report from Allied Business Intelligence Inc. (ABI) here. In total, the worldwide market for line-powered Internet appliances is expected to jump from 21.4 million in terms of unit shipments in 2000 to 174.4 million units by 2006, according to ABI, a market research firm based in Oyster Bay, N.Y. The market for these devices will explode worldwide. North America will lead the early growth of these products, but it will only account for 37% of unit shipments by 2006, ABI said. The report segments the line-powered Internet appliances into nine device categories: tethered web pads, mobile web pads, e-mail clients, fixed-line web screen phones, digital audio receivers, consumer desktop thin clients, enterprise desktop thin clients, net TV devices, and web-enabled game consoles. In the early stages of the market, however, some OEMs stumbled after bringing out products with high hardware costs, poor designs, incorrect target market identification, and flawed business strategies, said Navin Sabharwal, who tracks the industry for ABI. The newer market entrants, such as the PC OEMs, are having more success, he said. "Much of the early market adoption will occur in existing PC households, not in non-PC homes as many believe," he said. "The goal for these devices should be to complement and leverage the PC rather than attempt to replace it." The report argues that the growth of the Internet appliance market represents the PC-plus--not the post-PC era. Critical in facilitating the presence of multiple computing devices in a household will be the greater use of home networking by Internet appliance vendors, and the broader deployment of residential gateways to facilitate Internet and resource sharing. While some early Internet appliances are employing phoneline networking interfaces, ABI expects wireless and powerline networking schemes to be important in providing flexibility for device location. ABI cautions that adding home networking support is not simply about adding physical components, but also about developing software that will shield the consumer from the complexities of networking.