Wi-Fi handsets set for growth in 2007

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Demand for dual-mode cellular/Wi-Fi mobile devices is set to increase massively this year as manufacturers position the technology as a viable alternative to other ways of connecting to high-speed broadband, claims new research.

While these types of handsets accounted for just three per cent of total shipments last year, they will be the "breakout market segment in 2007" and will represent 20 per cent of the total market in 2009, says market research firm In-Stat in its report entitled 'The Wi-Fi Chipset Market: Portable Connectivity Applications Drive Volumes.'

This year's growth in demand will build on an already solid foundation of increased appetite for Wi-Fi, according to the research findings. In 2006, for example, more than 200 million Wi-Fi chipsets were shipped worldwide, representing a 32 per cent increase on the volumes shipped in 2005.

"Dual-mode cellular/Wi-Fi handsets are pushing hard into the market in 2007, with handset vendors Nokia and HTC really leveraging Wi-Fi as an alternative high-speed broadband connectivity option," says Gemma Tedesco, an analyst at In-Stat.

"Wi-Fi for voice is expected to pick up this year, with T-Mobile's nationwide FMC roll-out in the US."

In terms of market sub-segments, In-Stat is tipping the portable media player market as one to watch, as Microsoft and Apple's offerings start to grab more user attention.

In-Stat also predicts that Wi-Fi uptake levels in devices like DTVs and set-top boxes to be quite slow.

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