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ABI Research Asks, Can Automotive Bluetooth Outgrow Its Telephony Niche?


OYSTER BAY Oyster Bay, uninc. area (1990 pop. 6,687) of the Town of Oyster Bay, Nassau co., SE N.Y., on N Long Island, on Long Island Sound; settled 1653. It is chiefly residential. , N.Y. -- A new study by ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother.


(Application Binary Interface) A specification for a specific hardware platform combined with the operating system.
 Research confirms that Bluetooth penetration in the automobile will continue to enjoy sustained growth over the next few years, primarily in the form of hands-free kits and speakerphones. But ABI questions, how long is this growth sustainable and can Bluetooth expand its horizons past telephony?

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

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 analyst Dan Benjamin, "Bluetooth promoters envision the technology serving in the vehicle for entertainment and telematics purposes. It remains to be seen whether Bluetooth can capitalize in these automotive areas."

Consider Bluetooth as a telematics platform. "We see a number of companies going in that direction . . . sort of" says Benjamin. The Microsoft/Fiat initiative announced earlier this year is an example. Not many other companies have jumped on that bandwagon. "Yes, a couple of similar partnerships have been announced for Europe; but the trend there is to adopt much simpler systems. Telematics has not proved very popular in Europe, and cost reduction is paramount."

Some Bluetooth boosters have promoted the technology -- in the form of Bluetooth headphones Head-mounted speakers. Headphones have a strap that rests on top of the head, positioning a pair of speakers over both ears. For listening to music or monitoring live performances and audio tracks, both left and right channels are required.  for use with rear-seat screens -- for in-vehicle entertainment. But according to Benjamin, "in terms of sales Terms of sale

Conditions under which a firm proposes to sell its goods or services for cash or credit.
 in the automotive environment, those would become available several years from now, if ever." It really depends on how "media in the vehicle" develops over the medium-term. Will it be streamed in? Stored in a big media library? In the latter case, perhaps Bluetooth headsets might make sense, but it would still be a niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers.
.

ABI Research's conclusion: Bluetooth still holds great potential, but it's a complex and continually emerging picture. The new study, "Automotive Bluetooth," can help sort fact from fiction, describing how Bluetooth opens doors for automakers to utilize telephony in a cost-effective fashion, using the driver's own wireless account.

Founded in 1990 and headquartered in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the Web at www.abiresearch.com, or by calling 516.624.2500.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 18, 2004
Words:343
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