Digital Display Technology - Consumer Electronics Association

In the U.S.,AT&T Wireless and Sprint PCS have been quickto jump on board with clip-on cameras for their new cellphone models. Integrated versions are expected to follow.“The integration of digital imaging capabilities into handsetsand PDAs may be just what the doctor ordered,” says ChrisChute, a senior analyst for IDC’s Digital Imaging Solutionsand Services unit. Chute expects worldwide shipments ofthese fully converged (PDA/digital/digital camera) devices toreach 151 million units in 2006.“In time, camera phones will outsell digital cameras worldwide,”says Randy Roberts, director of imaging of Nokia’sImaging Business Unit, one of three new business unitsNokia formed about four months ago.According toRoberts, the new business groups are part of a plan byNokia to segment markets into specific applications. In additionto digital imaging, a new Entertainment & Media Unitwas established to develop mobile phones that are optimizedfor MP3s and other features.These devices wouldprobably not function as a PDA or feature a digital camera.A Business Applications Unit is expected to focus on developingPDA-centric devices, but with integrated phones.“Camera phones will be an essential tool in driving handsetreplacement rates in the next five years, especially in sluggishmarkets such as Western Europe,” says Neil Mawston, asenior analyst with Strategy Analytics.“In the U.S.,” he said,“we are forecasting that the growth for camera phones willbe noticeably slower than Western Europe due to networkinteroperability issues, lagging short messaging serviceuptake, and the relatively high cost of devices and per-eventphoto messaging.” For North America, Mawston expectscamera phones to account for 13 percent of total PDA/digitalhybrid sales in 2007, compared with 21 percent inWestern Europe in 2007.HIGH-SPEED NETWORKSNew high-speed data links, such as 2.5 generation (2.5G)and third generation (3G) wireless networks, are the key toenabling camera phone users in the U.S. to send andreceive images.And almost all U.S. wireless carriers areexpected to offer 2.5G service by the end of this year.Thisis important if digital camera-enabled phones are to send“To be a positive experiencefor consumers, convergencedevices must provide the righthardware, content and service,be easy-to-use, and enhanceconsumers’ ability to use, transferand create content.”and receive still digital images by e-mail, via multimedia messaging,to a printer using Bluetooth or infrared (IR), or to aphoto album on the Internet.The IEEE 802.11b wireless local area network standard, alsoknown as Wi-Fi, may be a sleeper as a totally new integratedfeature for handhelds.While it does not offer the seamlessmobility of cellular networks or the security, severalcomputer and telecom companies, including Intel, IBM,Verizon Communications and AT&T Wireless, have beendiscussing the joint development of a nationwide wirelesshigh-speed network for handheld and other portable computersthat could access the Internet. Despite its limitations,some analysts believe Wi-Fi will be used more oftenthan Bluetooth, particularly among well-traveled consumersand business/professional users.For one thing,Wi-Fi is considered to be a more robust systemthan Bluetooth.Also, despite its spotty coverage at themoment (mainly in some Starbucks, public areas in hotelsand major airports), Kagan World Media is projecting thatpublic access to Wi-Fi will increase a hundredfold in thenext 10 years. Intel, a charter member of the BluetoothSpecial Interest Group, is aggressively promoting the Wi-Fidevelopment program, and already has announced plans toprovide 802.11 functionality in all of its microprocessors formobile computing products beginning in January. StrategyPRODUCT PREFERENCES*OVERALL 18 TO 34 35 TO 54 OVER 54Prefer converged wireless 58% 62% 62% 50%phone/Palm PCPrefer two stand-alone products 42% 39% 38% 50%*among owners of a wireless phoneSource: CEA Market Research, 2001.10 OCTOBER 2002 5 Technologies to Watch