Features

Mobile Phone Market Pushes Growth of Bluetooth Chip Market

By Sophia Mayengbam

Bluetooth penetration in laptops, cell phones, desktop computers or PDAs has been widespread with cell phone topping the list. The rapid uptake of Bluetooth technology in the mobile phones has accelerated the growth in Bluetooth chip shipments, reports IT research firm In-Stat.

The rising Bluetooth chip shipments have had a cascading effect, leading to falling chip prices. This has led in turn to greater Bluetooth penetration of mobile phones and the emergence of Bluetooth in other product segments.

"The primary driver for Bluetooth handsets is the desire to connect to Bluetooth mono headsets, nearly 33 million of which shipped in 2005," says Brian O’Rourke, In-Stat analyst. "This figure is expected to increase to over 55 million in 2006."

In an earlier report In-Stat had predicted that Bluetooth device shipments will experience a compound annual growth rate of 60 percent during the five-year period between 2003 year and 2008.

In another report titled, "Bluetooth 2005: The Future is Here, " In-Stat had predicted that Bluetooth-enabled devices are expected to increase from 316 million units in 2005 to 866 million in 2009.

According to the recent study, 'Bluetooth 2006: Mobile Phones & Headsets Driving the Market to New Heights', In-Stat said among all the handsets, GSM phone have the highest number of Bluetooth adoption, with one third of GSM handsets shipping with Bluetooth in 2005.

European and Japanese automakers have made Bluetooth capability in higer-end cars in 2005.
According to results from In-Stat’s 2006 Residential Technology Survey, 50% of average US consumers claimed to be 'Extremely Familiar' with Bluetooth technology, compared to a mere 2% of respondents in a 2005 survey.

Bluetooth, the short-range wireless service designed initially for cordless earpieces for mobile phones, is poised for more growth. Its penetration does not end with mobile phones, cars or laptops; the technology has been used as car, stereos, shades, jackets, etc. More Bluetooth enabled devices are being sold and more people are using them. It can be now seen in airports, offices and on every method of public transportation. The possible applications of Bluetooth technology are endless. It is a possibility that tomorrow all the inanimate objects around us are link together with the technology.

Bluetooth is among a number of wireless technologies on the market. In-Stat said some the wireless technologies will prove to be challengers to Bluetooth. Of special concern should be two standards based on Ultra Wideband (UWB): Wireless USB and Wireless 1394. Though neither standard is currently on the market, both certainly stand in the way of potentially lucrative markets for Bluetooth in PCs, PC peripherals, and consumer electronics (CE). Both standards will offer much higher data rates than Bluetooth, as well as already being familiar standards to PC and CE vendors.


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