PHOENIX--(BUSINESS WIRE)--Fat clients, primarily PCs, are the
bread and butter of the Internet Appliance market today,
accounting for more than 90% of the revenue.
Semico Research Corp. believes that this will change
dramatically by 2004. In a recently published study,
"Internet Appliances: Are They Wearing a Wire," Semico
predicts that wireless, web-capable cell phones will account for
42.1% of the revenue in the Internet Appliance market, almost
equaling the 43.6% share of revenue forecasted for PCs.
What is more, in terms of units, smart cell phones will
dominate. Nearly 80% of the units shipped into the Internet
appliance market in 2004 will be smart cell phones.
This is a huge market, growing bigger. In 1999, the Internet
Appliance market totaled $73 billion. Semico's forecast is that
this will grow at a compound annual growth rate (CAGR) of 18% to
reach $167 billion by 2004.
Unit shipments, currently at 46 million units, will explode
to 887 million units by 2004, an 81% CAGR.
Success in the Internet Appliance market is not assured. It
will hinge on the cost, quality, and ease of use of devices, the
cost and quality of the Internet connection, and the quantity
and quality of Internet content designed specifically for
Internet Appliances.
Prices will need to come down to $150 or less. The cost of
the connection to the Internet will have to decline. The
Internet connection speeds of wireless devices will have to
increase. And,
Internet content providers will need to provide web pages in
an alternative format easily read on tiny screens.
Semico believes that cell phones and handheld devices will
converge in the future into one product that can play digital
music, display color video, provide wireless e-mail and Internet
access, and provide cell phone and typical handheld functions.
Windows-powered products with these capabilities are due out
this year.
"Internet Appliances: Are They Wearing a Wire?"
offers detailed forecasts and discusses the issues surrounding
this rapidly growing market. This study is available for
immediate shipment. The list price is $3,500.
Semico Research Corp. is a leader in providing semiconductor
market research and custom consulting. Other products and
services are available at the Semico Web site,
