Bluetooth gaining momentum.

In the midst of a technology downturn, Bluetooth is steadily gaining market traction, evidenced by steady market growth in 2002. Allied Business Intelligence (ABI, Oyster Bay, NY, www.alliedworld.com) projects Bluetooth chipset shipments to increase to 33.8 million in 2002, up from 11.2 million in 2001. The report, Bluetooth: The Global Outlook for Bluetooth Component and Equipment Markets, examines the evolution of the technology, analyzes potential overlap with other wireless technologies, forecasts the IC market and segments Bluetooth device shipments into 15 categories.

The Bluetooth semiconductor market is forecast to grow to just over 1.1 billion chipsets by 2007, with associated revenues of $2.54 billion. By the end of 2003 Bluetooth should become a standard feature for handset vendors designing 2.5G and 3G phones. Bluetooth IC vendors are also in the midst of a competitive frenzy as they look to capture a foothold in the market. Particularly impressive has been the chipset average selling price (ASP) declines over the last 12 months. Bluetooth chipset pricing is rapidly shifting from a market obstacle to a market driver. As pricing becomes more favorable, Bluetooth integration becomes more compelling for a larger set of device vendors.