1394 Slowing in PC Market, But Consumer Electronics Shows Promise According to In-Stat.

SCOTTSDALE, Ariz. -- 1394 is being strongly challenged by USB in PC and peripherals markets, but there are signs of life in consumer electronics (CE), reports In-Stat (http://www.in-stat.com). Digital televisions, cable set top boxes, and DVD recorders are all driving 1394a growth in the CE segment, the high-tech market research firm says. In addition, the High-Definition Audio Video Networking Alliance (HANA) has endorsed 1394 as a transmission medium for high-definition content, a development that may spur adoption of 1394 in home video networks.

In the PC world, 1394 has had success in notebook PCs, but has struggled in corporate desktops, which account for a significant share of PCs sold annually. However, Microsoft has announced that it will support 1394b in its next-generation Vista operating system, which may breathe additional life into 1394 in this segment.

"The CE segment is expected to surpass the combination of the PC and PC peripheral segments in 1394 devices by 2007," says Brian O'Rourke, In-Stat analyst.

Recent research by In-Stat found the following:

--The overall worldwide market for 1394-enabled devices will grow from 115.8 million units in 2005 to 219.9 million in 2010.

--If HANA is successful in driving 1394b as a home networking technology, In-Stat expects to see 1394b in wall plates or separate boxes, such as gateways, rather than in CE devices.

The research, "1394 2006: Will Vista and HANA Support Provide a Boost?" (#IN0602963MI), covers applications for 1394 in four categories: PCs, PC peripherals, Consumer Electronics (CE), and Automotive. It includes unit forecasts for 1394-enabled devices by category through 2010. It also provides consumer survey data that resulted from 1394-related survey questions inserted into In-Stat's annual US Residential Technology Survey (RTS).

For more information on this research, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=161 or contact Erin McKeighan at 480-609-4551 or [e-mail]. The price is $3,495 (US).

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