Convergence Driving Handheld Device Markets, Says ABI Research.

OYSTER BAY, N.Y. -- A recovering economy, handheld devices for niche markets, and a bevy of new Wi-Fi-ready phones are creating positive synergies for Wi-Fi.

According to Lance Wilson, director of wireless research at ABI Research, a somewhat more bullish economy has prompted the company to raise its forecast for shipments of wireless handsets in 2004, compared to estimates made in the second quarter.

At the same time, he says, we are seeing the beginning of a trend towards wireless devices - some not including any voice capabilities - aimed at specific niche markets.

One product he cites is the OGO, offered by Cingular. This handheld unit, with its service plan offering unlimited instant messaging and email at a modest cost, is aimed squarely at the youth market. With its big color screen, full keyboard and robust construction, the OGO is, says Wilson, "a very high quality piece of equipment."

Another example of a non-voice product targeting a niche market is Nokia's N-Gage, a mobile multiplayer game deck with Bluetooth and GPRS capability, digital music player, stereo FM radio, MMS, email, and XHTML browser.

Philip Solis, ABI Research's senior analyst, wireless connectivity, adds that the final trend in this trio of convergence is the rapid rise we're about to see in the number of Wi-Fi-compatible cellular phones on the market. "Starting this year, and gaining momentum over the next two years, Wi-Fi-capable phones will ship in large and growing numbers," he says. "The number of embedded Wi-Fi ICs sold will surpass that of Wi-Fi networking chipsets by 2006, and is forecast to account for more than twice as many units shipped by 2007."

ABI Research's Mobile Devices Service examines global trends in wireless handsets, with forecasts segmented by technology and by region, while its Wi-Fi Service provides timely data on the dynamic Wi-Fi market, from hotspot deployments to integrated circuit (IC) shipments to equipment revenues.

Founded in 1990 and headquartered in New York, 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.