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Bluetooth industry slated for flexible growth prospects

Posted: 20 Aug 2002 ?? ?Print Version ?Bookmark and Share

Keywords:Bluetooth chipset? handsets?

The Bluetooth industry is forecasted to experience growth this year, with Bluetooth chipset shipments seen to increase to 33.8 million, up from 11.2 million in 2001, according to research firm Allied Business Intelligence (ABI). In the long term, the Bluetooth semiconductor market is forecasted to grow to just over 1.1 billion chipsets by 2007, with associated revenues of $2.54 billion.

ABI explained that the key enablers for this growth would be the efforts of handset vendors and Bluetooth IC suppliers. For instance, Nokia and Motorola are catching up on the trend of Bluetooth integration, as did Ericsson, currently considered the leading Bluetooth integrator. By the end of 2003 Bluetooth will become a standard "checklist" feature for handset vendors designing 2.5G and 3G phones, ABI added.

Further, Bluetooth IC vendors are also in the midst of a competitive frenzy as they look to capture a foothold in the market with a view to being long-term survivors. Particularly notable has been the chipset ASP declines over the last 12 months, which was achieved in the absence of a bigger ramp-up in volume. In effect, Bluetooth chipset pricing is rapidly shifting from being cited as a market obstacle to becoming a market driver, and as pricing becomes more favorable, Bluetooth integration becomes more compelling for a larger set of device vendors.

While mobile handsets are set to dominate the Bluetooth device market, the report cites that other key Bluetooth device categories will include cordless headsets, computing devices, and the automotive market.

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