Bluetooth chip sales to hit $1.7bn in 2007

Positive future thanks to PMGs

Some 35.8 million Bluetooth chips were sold last year, up 245 per cent on 2001's figure, market researcher In-Stat/MDR reported today.

Driving that growth was the increasing installation of Bluetooth into mobile phones. And the power behind that trend was falling chip costs, leading In-Stat to draw the startling conclusion that "the uptake rate will significantly rise as the solution cost declines". In other words, the cheaper the chip, the more are sold. Golly.

In addition to that, European and Asian cellular network providers are going to favour products that provide a way of building broader services than telephony. Dubbed Personal Mobile Gateways (PMGs), these are devices are not primarily designed for voice communications, but can use the cellular network for messaging, gaming or web access. In-Stat/MDR reckons that will favour Bluetooth too, presumably for local device-to-device connections and to allow non-network devices, such as PDAs, to connect to the cellular infrastructure via mobile phones.

PMGs are expected to appear by the end of the year. Beyond that, In-Stat/MDR expects the revenue from Bluetooth chips to rise to $1.7 billion in 2007, the result of a compound annual growth rate of 74 per cent between 2002 and 2007. ®

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