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Mobile computing market set to grow, NEW STRAITS TIMES-MANAGEMENT

Posted on: Tuesday, 30 September 2003, 06:00 CDT

xfdws MOBILE-COMPUTING sked Emerging Markets Datafile

September 29, 2003

NEW STRAITS TIMES-MANAGEMENT TIMES

MALAYSIA

ENGLISH

Mobile computing market set to grow, NEW STRAITS TIMES-MANAGEMENT TIMES

Sharifah Kasim

ASIA WorldSources, Inc. 322 MASSACHUSETTS AVENUE 2ND FLOOR, NE WASHINGTON, DC 20002 COPYRIGHT 2003 BY WORLDSOURCES, INC., A JOINT VENTURE OF FDCH e-Media, INC. AND WORLD TIMES, INC. NO PORTION OF THE MATERIALS CONTAINED HEREIN MAY BE USED IN ANY MEDIA WITHOUT ATTRIBUTION TO WORLDSOURCES, INC.

THE positive outlook for the mobile computing market can be attributed to developments in the more mobile-centric converged segment. This has seen the introduction of devices such as the Nokia 7650 and Sony Ericsson P800, according to IDC Malaysia analyst Stephanie Wong.

In fact, Wong says, the converged segment is contributing to the majority of growth in mobile computing, and expected to grow by 195 per cent at the end of the year over 2002.

Another segment, the smart handheld device (SHD), will increase by 90 per cent with a shipment of about 139,000 units this year, she says.

''We expect shipments of SHD to reach the 280,000 by 2007, thus achieving a compound annual growth rate (CAGR) of 31 per cent,'' Wong says, adding that consumers are still key purchasers of SHD.

Whether the devices are used in the enterprise environment by individuals or for personal use only, consumers remain the primary purchasers, Wong points out.

Though early adopters of SHD were individuals with more technology-savvy characteristics, today's users are coming from different age groups and professions, she adds.

Meanwhile, the portable personal computer (PC) segment will record a 22 per cent growth with shipments expected to reach close to 220,000 units, Wong says, adding that the shipments are projected to reach close to 316,000 units by 2007 or CAGR of 12 per cent.

According to Wong, the portable PCs consumption is different from SHD where the former's shipment is driven by the commercial category of users.

Portable PCs, despite their name, are also not as handy as SHD as they have a much shorter battery life and carry more weight, she says.

''However, now with introduction of public wireless local area network services or more popularly known as hotspots, there are more incentives for mobile workers to set up their notebooks at these hotspot locations,''

Wong says.

Coincidentally, many of these hotspots are in cafes, where mobile workers could hook up to their electronic mail or work on any documents in between appointments, she adds.

Wong says the introduction of more hotspots is also a factor that could accelerate more usage of mobile computing devices, along with introduction of third-generation (3G) technology in the future.

More importantly, an increase in competition will drive prices down and speed up adoption rate, she says.

Yet, limited availability of applications could cause delay in handheld purchases or replacements, she adds.

In addition, a slow adoption rate among enterprises to adopt Web-enabled enterprise solutions, which require the usage of handhelds, could also pose a hurdle to further market growth, she adds.

Copyright 2003 NEW STRAITS TIMES-MANAGEMENT TIMES all rights reserved as distributed by WorldSources, Inc.

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