ABI bullish on handheld devices

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Dec. 03, 2004

The handheld device market is expanding faster than expected, especially for Wi-Fi-enabled devices, says ABI Research, which has increased its forecast for 2004 wireless handset shipments. ABI identifies the causes behind the expansion, which include several converging trends and "a somewhat more bullish economy," in two new reports.

One noteworthy trend is toward non-voice wireless devices aimed at specific niche markets, such as the OGO and Nokia's N-gage, according to ABI. The OGO offers unlimited instant messaging and email at a modest cost, and is aimed at the youth market. The N-Gage, another non-voice device, is a mobile multiplayer game deck that includes Bluetooth and GPRS, digital music player, stereo FM radio, MMS, email, and XHTML browser.

Finally, ABI predicts a rapid rise in the number of Wi-Fi compatible cellular phones on the market. "Starting this year, and gaining momentum over the next two years, Wi-Fi-capable phones will ship in large and growing numbers," observes Philip Solis, ABI's senior analyst for wireless connectivity. "The number of embedded Wi-Fi ICs sold will surpass that of Wi-Fi networking chipsets by 2006, and is forecast to account for more than twice as many units shipped by 2007."

The two new ABI reports are:

Mobile Devices Service -- examines global trends in wireless handsets, with forecasts segmented by technology and by region.
Wi-Fi Service -- offers data on the Wi-Fi market ranging from hotspot deployments to integrated circuit shipments to equipment revenues.

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