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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: J Fieb who wrote (37982)	12/31/1998 6:08:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

Digital "gagets" in 1999......................................... (recordable DVD will be delayed because of Hollywood's insistants on copy protection) news.com Digital gadget revolution to grow By Reuters Special to CNET News.com December 31, 1998, 12:50 p.m. PT URL: news.com year in review The digital revolution in consumer electronics, including personal computer gadgets, began to gain attention in 1998, and it is expected to take a stronger hold of the market in the coming year. In 1998 the consumer electronics industry set the groundwork for the switch to digital products from analog products, as companies formed alliances and introduced new products in the personal computer gadget, digital camera, and digital television arenas. Digital technology produces sharper, higher-resolution images and crisper sound. "Everything is going from analog to digital," said Kevin Hause, an analyst at International Data Corporation. He added the shift will drive the consumer electronics market for the next five to six years. Personal computer-type gadgets are perhaps most reflective of the oncoming digital age, and 3Com's PalmPilot is everyone's favorite example. It offers calendar and address book functions and the latest version will allow access to the Internet and real-time data such as stock quotes. "These products let you take pieces from the Internet away with you,'' said Matthew Nordan, an analyst at Forrester Research. In 1999, 3.5 million units of devices similar to 3Com's Palm Pilot, smart phones, and near-personal computers will be sold in the U.S., with a vast majority of them pocket- sized, Forrester predicts. As PC gadgets become hot items, home networking will grow, and may down the line reach a "Jetsons-esque" level, in which everything in the home is computerized. In the near-term, however, networks that enable users to connect multiple PCs to printers and other PC gadgets in the home will grow, especially as users get broadband Internet access, analysts said. Other digital products that have gotten attention recently include CD-writable products, which allow consumers to record on compact discs, and minidisk players. Diamond Multimedia Systems has elicited an uproar from record studios with its device that allows music to be downloaded from the Internet. On the video end there is DVD, which is entering the home entertainment realm. However, PaineWebber said in its 1999 technology forecast that DVD will not make major progress in the market against CD-ROM's due to continued vendor wrangling over standardizations. Still, the products are attracting users. In the first 18 months of sales, 365,000 people started using CDs, 394,000 VCRs, and 1.07 million DVD, said Jeff Joseph of the Consumer Electronics Manufacturing Association (CEMA). Digital VCR's are expected to be the next hot video item, as consumers become attracted to their real-time pause and personalized viewing abilities. For kids, some of the hottest gadgets have been interactive toys, as Hasbro's Furby has penetrated many households this season. Forrester analyst Seema Williams expects interactive toys to continue to be a hit with kids.