The Mobility Revolution Drives Handheld Convergence According to In-Stat

The wireless handset is the central, target device form factor as communication and information realms converge into the mobility space of handheld devices, according to Cahners In-Stat Group (http://www.instat.com).

The high-tech market research firm projects that, in order to be successful, wireless handheld device industry players must quickly and aggressively stake out next generation phone feature set differentiators while strategically leveraging regional market dynamics and successfully positioning for global 3G.

"Wireless handsets are evolving from and substantially expanding the definition of what has traditionally been the voice-only cell phone market. With relatively modest form factor adaptations, wireless handsets will be the standard, single-handed use, mobile Personal Area Network (m-PAN) form factor," said Brenda Sky, industry analyst with In-Stat's Wireless Handset Group.

In-Stat finds that PDAs, Palmtops, and Entertainment choices will continue to merge functionality into better, faster, cheaper handheld units with wireless voice capability.

"Eventually, these units will automatically synchronize with selected other handheld and stand-alone desktop resources, and seamlessly network with wireless LANs. Evolution from desktop PCs and wired telephones to wireless multi-purpose handheld mobile devices, is inevitable," said Sky.

In-Stat has also found that:

-- The wireless mobility space is growing out of traditional fixed environments, including corporate, SOHO, and home communication and information stations.

-- Immediate, highly leveraged feature set choices relative to

price point, user value, and trade-off device characteristics (e.g., stand-by time vs. battery size) are the most critical factor to create long-range success for manufacturers and service providers. Compelling, differentiating 2+G handset feature sets lay essential groundwork for success in tomorrow's 3G environment.

-- Handset unit sales will grow to 997.7 million by the end of fiscal 2005.


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