Information Appliances and Pervasive Net Access

Information Appliances Will Outship PCs in 2001

Dallas, August 9, 2000 – A new study conducted by Parks Associates, Information Appliances and Pervasive Net Access, indicates that information appliances will outship PCs in the United States in as early as 2001.

>The term “information appliance” – along with Internet appliance, network appliance, and access appliance – describes alternatives to the personal computer that are designed to benefit from network services. Parks Associates defines an information appliance as a relatively low-cost, easy-to-use, reliable, special-purpose device that obtains and presents, captures and reports, and/or stores and manages various types of information in order to bring the benefits of the Internet to consumers. Specific products that can be classified as information appliances include Internet-connected TVs, consumer network computers, Web tablets, e-mail only devices, screen phones, Internet game consoles, handheld PCs/personal digital assistants, Internet-enabled mobile phones, and automotive telematics systems.

Parks Associates’ research on information appliances suggests that in 22 million in-home information appliances (excluding Internet-enabled mobile phones and telematics systems) will ship in the United States in 2001, compared with 18 million home PCs in the same year. By the end of 2005, Parks Associates forecasts that total revenues from all information appliances (including Internet-enabled mobile phones and telematics systems) will reach $33.7 billion.

“The market for information appliances will grow very rapidly,” says Tricia Parks, president of Parks Associates. “This provides a huge opportunity to numerous industries involved in the development of products and services that take advantage of the Internet.”

Parks Associates’ report Information Appliances and Pervasive Net Access includes detailed information on the drivers to the growth of information appliances, major product categories, the key players, the networks that deliver Internet content, hardware/software technologies related to information appliances, and market forecasts through the year 2005. For more information, please contact Parks Associates at 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a Dallas, Texas-based market research firm specializing in emerging technologies and services for the home. Founded in 1986, Parks Associates provides primary and secondary research on home systems, in-home networks, home security, consumer electronics, telecommunications, Internet service, energy utility, and subscription TV industries. Parks Associates’ clients include both Fortune 500 companies and small start-ups. Parks Associates’ services include syndicated reports, multi-client studies, custom consulting, workshops, and conferences.

Information Appliances1

Information Appliances2

 

 

Table of Contents

1.0  Executive Summary
            1.1  Information Appliances
1.2   Pervasive Net Access
1.3   Forecasting Challenge
1.4   Market Forecasts

2.0   Information Appliances Overview
           2.1   Information Appliance Definition(s)
                   2.1.1    Nuances in the Definition
                   2.1.2    Some everyday devices can become Information Appliances
                   2.1.3    PCs that are like Appliances
                   2.1.4    Consumer Internet Terminals
                   2.1.5    Wireless Handhelds
2.1.6    Enhanced Entertainment
2.1.7    On the Road
2.1.8    Miscellaneous Devices
2.2    Information Appliance Benefits
2.2.1    Simplicity
2.2.2    Information at Your Fingertips
2.2.3    Centrally Stored Information
2.2.4    Universal Access
2.2.5    Lower Cost Manufacturing and Support
2.3    Information Appliance Market Drivers and Opportunities
2.3.1    Market and Consumer Trends
2.3.2    Social and Demographic Trends
2.3.3    Science and Technology Trends
2.3.4    Miscellaneous Opportunities
2.3.5    More on Moore
2.3.6    Make way for Metcalfe
2.3.7    Elect to Embed
2.3.8    Content Convergence
2.3.9    New Uses for the Old PC

3.0  PCs That Become Appliance-like
           3.1     Definitions and Applications
                   3.1.1   Diskless PCs
                   3.1.2   X-stations and X-terminals
                   3.1.3   Windows-based Terminals
3.1.4   Network Computers
3.1.5   NetPCs
           3.2    Current Market, Trends & Drivers
                   3.2.1    Shipments and Revenue Forecast
                   3.2.2    Reducing Total Ownership Costs
                   3.2.3    The under-$500 PC gets subsidized
3.2.4    The Impact of Home Networking
3.2.5    Network Performance vs. Processor Performance
3.2.6    PC Functions Explode out of the Box
           3.3     PC Product Examples
                   3.3.1    Acer WT 300
                   3.3.2    Boundless Capio II
                   3.3.3    IBM Net Vista
3.3.4    Microsoft Web Companion
3.3.5    NCD ThinSTAR
3.3.6    Sun Ray 1 Enterprise Appliance
3.3.7    Wyse Winterm
3.3.8    Apple iBook and iMac
3.3.9    Compaq iPAQ and Presario EZ2200
3.3.10  Dell WebPC
3.3.11  eMachines
3.3.12  Mattel targets a large Micro Market – Kids
3.3.13  VTech early-learning PCs

 4.0    Consumer Internet Terminals
           4.1      Definition & Applications
                   4.1.1    Subsidized NetPCs
                   4.1.2    Consumer NCs
                   4.1.3    E-mail Terminals
                   4.1.4    Wireless Web Tablets
                   4.1.5    Screen Phones
           4.2     Current Market, Trends & Drivers
                   4.2.1    Shipments and Revenue Forecast
                   4.2.2    Broadband Always-On Networks
                   4.2.3    Home Networks
                   4.2.4    North America vs. R.O.W. (Rest of the World)
                   4.2.5    Service Provider Driven
                   4.2.6    Screen Phones Have Been Around
           4.3    Net PC Product Examples
                   4.3.1    Apple iBook and iMac
                   4.3.2    Compaq Presario EZ2200
                   4.3.3    Dell WebPC
4.3.4    IBM Net Vista
4.3.5    Intel Dot.Station
4.3.6    eMachines
4.4    Consumer NC Product Examples
4.4.1    Compaq Clipper
4.4.2    CMi Worldwide iCEBOX
4.4.3    IAN Webplayer
4.4.4    Leon@ardo Ariston
4.4.5    Netpliance i-opener
4.4.6    New Internet Computer
4.5     E-mail Terminal Product Examples
4.5.1    Cidco MailStation
4.5.2    JVC PocketMail
4.5.3    Landel Telecom MailBug
4.5.4    Sharp TelMail
4.5.5    Simpliance Inc.’s Linket
4.5.6    VTech
4.5.7    eNote TV email
4.6   Wireless Internet Tablet Product Examples
4.6.1    AOL and Gateway
4.6.2    National Semiconductor WebPAD™
4.6.3    ePodsOne
4.6.4    Microsoft Web Companion
4.6.5    Panja Inc.’s ViewPoint
4.6.6    Psion FridgePad
4.6.7    Qubit Technology’s wireless Web pad
4.7     Screen Phone Product Examples
4.7.1    Alcatel’s WebTouch One
4.7.2    Cidco’s CST2100
4.7.3    Ericsson’s HS210
4.7.4    InfoGear’s iPhone
4.7.5    Nortel’s PowerTouch 470
4.7.6    Samsung’s Anyweb

5.0  Handhelds Go Wireless
           5.1    Applications and Definitions
                   5.1.1     Mobile Phones
5.1.2    Two-way Messagers
5.1.3    Handheld PCs
5.1.4    Palm-sized Computers (PDAs)
5.1.5    E-books
5.1.6    Notepads
5.2    Current Market, Trends & Drivers
5.2.1    Geographical Differences
5.2.2    America Lags in Deploying Wireless
5.2.3    Developing Nations – The Largest Opportunity
5.2.4    Business / Consumer Differences
5.2.5    Speed Differences
5.2.6    Third-Generation Wideband Networks
5.2.7    The Broadband Roadmap has Speed Bumps
5.2.8    Paging Networks
5.2.9    Networking Offloads Function
5.2.10   Short-Range vs. Long-Range Wireless
5.2.11   Location Awareness and Proximity Marketing
5.2.12   M-commerce Challenge
5.2.13   Operating System Competition (EPOC, PalmOS, Windows CE)
5.2.13.1  EPOC
5.2.13.2  Palm OS
5.2.13.3  Windows CE
5.2.14  New Content or Reformatted Content
5.2.14.1  WAP
5.2.14.2  Dynamic Transforms
5.2.15   Better Graphics for Small Screens
5.2.15.1  ClearType
5.2.15.2  Electronic Ink
5.2.16   Handheld Computing
5.2.17   Security and Privacy
5.2.18   Health Concerns
5.3    Mobile Phone Sample Products
5.3.1    Ericsson
5.3.2    Kyocera (and Qualcomm)
5.3.3    Motorola
5.3.4    NeoPoint
5.3.5    Nokia
5.4    Two-way Messager Sample Products
5.4.1    Motorola
5.4.2    Research in Motion
5.4.3    Cybiko (Kid’s Communications Computer)
5.4.4    Tiger Lightning Mail (Free e-mail)
5.5    HPC and Sub-Notebook Sample Products
5.5.1    Ericsson
5.5.2    Hewlett-Packard
5.5.3    NEC
5.5.4    Sharp
5.5.5    Sony
5.6    Palm Computer and PDA Sample Products
5.6.1    Palm
5.6.2    Casio
5.6.3    Compaq
5.6.4    HandSpring
5.6.5    HP Jornada
5.6.6    Starfish Software Inc.
5.6.7    Symbol Technologies
5.6.8    VTech
5.7    E-books Sample Products
5.7.1    Glassbook
5.7.2    Microsoft
5.7.3    Palm
5.7.4    Rocket
5.7.5    SoftBook®
5.8    Note Pad Sample Products
5.8.1    CrossPad
5.8.2    Anoto Pen
5.9    Add-on Peripherals
5.10  Major Players from Outside of the Box
5.10.1   Device Makers
5.10.2   Content Providers
5.10.3   Wireless Portals
5.10.4   Wireless Carriers
5.10.5   Infrastructure Builders
5.10.6   Component Suppliers
5.10.7   Content Formatters
5.10.8   Content Synchronizers
5.10.9   E-Commerce Sites
5.10.10   Car Companies
5.10.11   Backend Software

6.0 Enhanced Entertainment
6.1     Definitions and Applications
6.1.1   Digital Music
6.1.2   Enhanced TV
6.1.2.1   Digital and High Definition TV
6.1.2.2   Interactive TV
6.1.2.3   Internet TV
6.1.2.4   Personalized TV
6.1.3   Game Consoles
6.2      Enhanced Entertainment — Overall Trends and Drivers
6.2.1   Analog to Digital Content
6.2.2   Wider Bandwidth
6.2.3   FCC offers Free TV spectrum, with restrictions
6.2.4   Broadcast vs. Streaming and Downloads
6.2.5   Mega Media Mergers
6.2.5.1   Time Warner Inc.
6.2.5.2   Disney Co.
6.2.5.3   Bertelsmann
6.2.5.4   Viacom International Inc.
6.2.5.5   News Corporation
6.2.5.6   Sony
6.2.5.7   TCI (AT&T)
6.2.5.8   Universal
6.2.5.9   NBC (General Electric Co.)
6.3    Digital Music Market
6.3.1   Digital Music Market Accelerators and Inhibitors
6.3.1.1   Digital Music Formats
6.3.1.2   Music Library Management
6.3.1.3   PC-based Digital Music Software
6.3.1.4   Free Music
6.3.1.5   The Music Industry Responds to the Internet Opportunity
and Threat
6.3.1.6   The Good Side of Napster
6.3.2   Digital Rights Management
6.3.2.1   Microsoft & Sony
6.3.2.2   IBM & RealNetworks
6.3.2.3   Is it too late?
6.3.2.4   Watermarking
6.4     Enhanced-TV Market
6.4.1   Enhanced-TV Market Accelerators
6.4.1.1   Strong Economy
6.4.1.2   Strong CE Spending
6.4.1.3   Family Budget can Afford it
6.4.1.4   Legislation
6.4.1.5   Multicasting
6.4.1.6   Better Picture Quality
6.4.1.7   Wider Screen
6.4.1.8   Improved Surround Sound
6.4.1.9   More Programming Choice
6.4.1.10  Electronic Program Guides
6.4.1.11  Simpler Remote Controls
6.4.1.12  Interactive Services
6.4.1.13  Forced Retail Sale of Set-top Boxes
6.4.1.14  Enhanced Set-top Boxes
6.4.1.15  Available Content
6.4.1.16  Content Archives
6.4.1.17  Movie Libraries
6.4.1.18  Repackaged News
6.4.1.19  CE Subsidies
6.4.1.20  Other Subsidies
6.4.1.21  Asset Protection
6.4.1.22  Interactive TV
6.4.1.23  Nearly Free ITV
6.4.1.24  Consumers Prefer TV
6.4.1.25  Broken Business Models
6.4.1.26  Interactive Advertising
6.4.1.27  Increased Ad Revenue Potential
6.4.1.28  Cheaper and more Targeted TV Ads
6.4.1.29  Mass Customization
6.4.1.30  Experienced Call Centers
6.4.1.31  Lower Operating Costs
6.4.1.32  New Revenue Sources
6.4.1.33  Distance Learning
6.4.1.34  Expanded Audience
6.4.1.35  Broadband Competition
6.4.1.36  Alternative Delivery Networks
6.4.1.37  Semiconductor Competition
6.4.1.38  Availability of High-definition TV Sets
6.4.1.39  Separation of Function
6.4.1.40  Video Format Conversion
6.4.1.41  Home Networks
6.4.1.42  The Master Set-top Box
6.4.1.43  Europe is Ahead of the U.S.
6.4.1.44  Asian Influence on the Set-top Box
                   6.4.2   Enhanced-TV Market Inhibitors
6.4.2.1   Inadequate Management Systems
6.4.2.2   Expensive Infrastructure Upgrades
6.4.2.3   Devoid of Good Content
6.4.2.4   Risky New Business Models
6.4.2.5   Battle over DTV Formats
6.4.2.6   Video PCs are Absent
6.4.2.7   Multicast vs. HDTV Broadcast
6.4.2.8   High Consumer Cost of HDTV
6.4.2.9   Price vs. Quality
6.4.2.10  Large Screens Take Up Space
6.4.2.11  Installed Base of Legacy TVs
6.4.2.12  High Consumer Cost of Set-top Boxes
6.4.2.13  Installation Hassles
6.4.2.14  Long Term Commitments
6.4.2.15  FCC Deadlines Won’t Hold
6.4.2.16  Lack of Market Demand
6.4.2.17  Personal Privacy
6.4.2.18  Established Usage Patterns
6.4.2.19  No Guarantee of Service Quality
6.4.2.20  Inadequate Home Wiring
6.5   Internet Game Console Market
                   6.5.1   Networked Models will Replace Standalone
6.5.2   Few Players
6.5.3   Microsoft and its X-Box
6.5.4   Game Console Hardware Trends
6.5.5   Game Functions move to Set-top Boxes
6.6     Portable Music Player Sample Products
6.6.1   Diamond Multimedia
6.6.2   Creative Labs
6.6.3   e-Digital
6.6.4   Pine D-Music
6.6.5   RCA
6.6.6   Sony
6.6.7   Innogear
6.6.8   Casio
6.7    Digital Radio Sample Products
6.7.1   AudioRamp.com
6.7.2   Kerbango
6.7.3   SonicBox Inc.
6.8    Music Jukebox Sample Products
6.8.1  Escient
6.8.2  Creative Labs
6.9     Enhanced TV – Sample Products & Key Market Players
6.9.1   ReplayTV
6.9.2   TiVo
6.9.3   America Online
6.9.4   AT&T
6.9.5   Microsoft
6.9.6   Liberate
6.9.7   OpenTV
6.9.8   Others
6.10  Game Console Sample Products
6.10.1   Microsoft X-Box
6.10.2   Indrema is More than a Game Box
6.10.3   Nintendo
6.10.4   Sega
6.10.5   Sony

7.0    On the Move – Automotive Telematics
7.1     Definition and Applications
7.2    Current U.S. Market, Trends, and Drivers
7.3    Product Examples
7.3.1   GM’s OnStar
7.3.2   Clarion AutoPC
7.3.3   Delphi’s Communiport
7.3.4   Visteon’s ICES

8.0   Miscellaneous
8.1   Market Trends and Drivers
8.1.1   Networking Embedded in Everyday Objects
8.1.2   No-New-Wires Networking Standards
8.1.3   Machine-to-Machine Discovery and Interaction
8.1.4   Thin Servers
8.1.5   Privacy and Security Issues
8.1.6   CES Demonstrations
8.1.6.1   Service Gateway
8.1.6.2   Internet Refrigerator
8.1.6.3   Bar Code Scanners
8.1.6.4   Dishwasher
8.1.6.5   Coffee Maker
8.1.6.6   Proximity Detection and Device-Specific Instructions
8.1.6.7   Remote Access with WAP Phone
8.1.6.8   Sharp Multimedia Phone
8.1.6.9   Consumer Electronics
8.1.6.10   A Home Printer for Service Providers
8.1.6.11   Meeting Minutes
8.1.7   Thalia’s Household Appliances Use UPnP / Others Use OSGi
8.1.8   Security Systems and Home Automation
8.1.9   Door Locks
8.1.10  Electric Meters
8.1.11  Sprinklers
8.1.12  Digital Cameras and Video Servers
8.1.13  Smart Toys
8.1.14  Pay Phones
8.1.15  Vending Machines
8.1.16  Wearables and Personal Area Networks
8.1.16.1   Personal-Area Networks
8.1.16.2   IBM’s Wearable PC

9.0    Hardware Technologies for Information Appliances
9.1     Processors
9.1.1  8-bit, 16-bit, and 32-bit processor variety
9.1.2  Power Efficient Designs for Long Battery Life
9.1.3  Embedded, System-On-a-Chip, Reference Designs, and
Core Libraries
9.1.4  Digital Signal Processors
9.1.5  Transmeta’s Silicon Chameleon
9.2    Storage
9.2.1  Flash Memory
9.2.1.1  Sony Memory Stick
9.2.1.2  SD (Secure Digital) Memory
9.2.2  Tiny Hard Drives
9.2.2.1  IBM MicroDrive
9.2.2.2  Iomega Clik! disk
9.3    Display Technologies
9.4    Expansion Ports

10.0    Software Technologies for Information Appliances
10.1  Operating Systems
10.1.1   Free and Open Source
10.1.2   Embedded
10.1.2.1    iReady
10.1.2.2    emWare Helps Extend the Internet
10.2  Java
10.2.1   Java Performance
10.2.2   Java Car vs. AutoPC
10.3  Automatic Device (and Service) Discovery
10.3.1   Jini
10.3.2   Salutation
10.3.3   UPnP
10.3.4   Conclusion
10.4  Backend Software and Middleware
10.4.1   Device Portals
10.4.2   Synchronization
10.4.3   Thin Client / Fat Server
10.4.4   Software Providers
10.5  Operating System Examples
10.5.1    BeComm
10.5.2    Chorus OS
10.5.3    DR-DOS
10.5.4    EPOC
10.5.5    GEOS
10.5.6    Inferno
10.5.7    Linux
10.5.8    Palm OS
10.5.9    QNX
10.5.10   OpenTV
10.5.11   VxWorks
10.5.12   Windows CE

11.0   Access Networks for Information Delivery
11.1  Raising The Speed Limit On The Public Switched Telephone Network
11.1.1   56k Modems
11.1.2   ISDN
11.1.3   DSL
11.2  High-Speed Data via Cable TV Networks
11.3  Broadband Fixed Wireless Networks
11.3.1   MMDS
11.3.2   LMDS
11.4  Satellite-Based Internet Access
11.5  Terrestrial Mobile Communications Networks
11.5.1  Circuit-Switched Cellular and CDPD
11.5.2   PCS Networks
11.5.3   The Impact of 3G
11.5.4   Paging Networks
11.5.5   Packet-Switched Wireless Data Networks
11.6  Summary

12.0   Home Networks: Bridging the Gap Between Technology and Consumer
12.1  No-New-Wire Home Networking Solutions
12.1.1   HomePNA (Home Phoneline Networking Alliance)
12.1.2   HomeRF
12.1.3   IEEE 802.11b
12.1.4   Bluetooth
12.1.5   HomePlug
12.2  Structured Wiring Solutions
12.3  Other Home Networking Technologies/Standards
12.4  Residential Gateways
12.4.1   Defining the Residential Gateway
12.4.2   RG-Enabled Applications and Product Examples
12.4.3   RG Standards Efforts
12.4.4   Conclusion about RG Development

13.0   Forecasts and Strategic Outlook
13.1  Forecasting Challenge

© 2000