Going Mobile? Advancing Technology & an Increasingly Mobile Workforce Generates Huge Potential for Portable Computer Markets
MOUNTAIN VIEW, Calif. — June 16, 1997 — Changes in the workplace and advancements in telecommunications technology, infrastructure and the networking industry, have made mobile computing an important element of the information technology industry, and have enabled portable devices to connect to an almost limitless supply of resources. Thus, the market for portable computers, pen computers, palmtops, peripherals and PC cards is growing rapidly.
The number of people who use computers to communicate by e-mail, the Internet, and on-line service has skyrocketed recently, indicating the potential of mobile computing. According to strategic research by Frost & Sullivan, World Portable Computer, Pen Computer, Palmtop, and Peripheral Markets, revenues in the mobile computing markets are projected to continue growing at more than 20 percent a year through the end of this decade and should have a compound annual growth rate of just under 17 percent for the period form 1996-2003.
The total revenues for this market in 1992 were $12.43 billion. With improvements in the design of portable computers and increased mobility in the workforce, revenues more than doubled in 1995 to $27.17 billion. In 1996, lower prices, the growth of the Internet, increased acceptance of vertical solutions, and the replacement of older machines contributed to a strong 35.3 percent growth in unit shipments, amounting to $33.52 billion in revenues. In 2003, the portables market is projected to generate $99.91 billion in revenues worldwide.
This is an industry that is characterized by fierce competition and constantly changing market conditions. Products in the mobile computing market change rapidly, lines between products are easily blurred, and new segments are constantly emerging. As a result, many market and technology trends are evident as companies strive to keep pace with new technologies and turbulent competition.
The adoption of PC cards, continuing development of wireless communication technology, longer lasting batteries and improved display technology account for the major technological trends in the portable computer market. Notably, the acceptance of PC card standards has allowed laptop, notebook, subnotebook, palmtop, and pen computers to greatly expand in functionality without significantly increasing in size, weight or price.
"The greatest change in this growing industry is the introduction of PC cards. PC cards have replaced many of the functions previously included in the peripheral market. Communications, storage, memory, and networking can all be handled by PC cards," says Michael J. Palma, information technologies analyst at Frost & Sullivan.
Independently, the market is characterized by price to performance, component shortages, and short product cycle issues. Portables manufacturers are constantly trying to narrow the performance gap with desktops, but the situation is inherently one of a moving target, particularly because portables and desktops leverage some of the same advances in component capabilities. However, desktop systems offer more functionality than contemporary notebooks for a third to half of the price.
"How professionals send and receive information and communicate with each other is forecast to continue to change in the next few years. The ability to connect to corporate databases and other on-line resources from remote locations should become a necessity for many businesses. To create and market successful new products, portable vendors must use existing technology to provide affordable solutions to real problems," says Palma.
The technologies reviewed include 10BASE-T Ethernet, 32-bit PCI local bus video, Active Matrix Display, Advanced Configuration and Power Interface (ACPI) specification, ATA Flash Memory, BIOS, CardBus, CD-ROM, Central Processing Unit (CPU), CompactFlash memory, Composite CDMA/TDMA, Computer-Telephone Integration (CTI), Data Synchronization, Digital ClientWORKS network management, Direct Thermal Printing, DMI (Desktop Management Interface), Double Supertwisted Nematic (DSTN), Dynamic Random Access Memory (DRAM), EDO DRAM, Electronic Mail, Encryption, Fax/Data/Voice modem, Field-emitter Display (FED), Flash electronically erasable programmable read-only memory (EEPROM), Flash memory, Flat-Panel Display, Floppy Disk Drive (FDD), Groupe Speciale Mobile (GSM) digital cellular, Hand-held Personal Computers (HPCs), Handwriting recognition, Infrared (IR), Inkjet printing, Intel Pentium Processors, IS-136-based PCS, IS-95-based PCS, Liquid Crystol Display (LCD), Lithium ion, Lithium polymer, Local Area Network (LAN), Magnetic Hard Disk Drive (HDD), Miniature Flash, MMX technology, Mobile clients, Modular expansion drive bay technology, Motion Picture Expert Group (MPEG) video playback, Network Administration, Nickel cadmium (NiCd), Nickel Metal Hydride (NiMH), Optical disk drives, PACS, PCMCIA-ATA hard drive, PCS-1900, Pen-based computing, Personal Communication Services (PCS), Personal Computer Memory Card Industry Association (PCMCIA), Personal Digital Assistants (PDAs), Personal Handyphone System (PHS), Personal Information Manager (PIM), Port Replication/Docking Station, PWT-E, Radio Frequency (RF), Random Access Memory (RAM), Read-Only Memory (ROM), Reduced Instruction Set Computing (RISC) processors, Remote Access, Screen Back Lighting, Sealed Lead Acid (SLA), Small Computer System Interface (SCSI), Smart Battery Systems (SBS), Smart phones, Solid State Disk (SSD) drives, Sound Cards, Static Random Access Memory (SRAM), Thermal Fusion printing, Thin Film Transfer (TFT), Token Ring, Wide Area Network (WAN), Wideband CDMA, Windows CE, Zinc Air, and Zoomed Video.
Market participants include: 3COM Corporation, 5D Technology, Aartronics Corporation, Acer America Corporation, Acma Computers, Inc., ACME Portable Machines, Inc., ACOM, Inc., Advanced Digital Systems, Inc., Advanced Micro Devices (AMD), Altima Systems, Inc., Altura Computer Systems, America Portable Research, Inc., AMREL Technology, Inc., AMS, Inc., Angia Communications, Inc., Apex Data Products, Apple Computer, Inc., ARM Computer, Inc., Asante Technologies, Aspen Computer, Inc., AST Research, Inc., ATI Technologies, Inc., Austin Direct, Axonix Corporation, B.I.T. Computer Inc., Badger Computers, Bell South Cellular, Boca Research, Inc., Boxlight Corporation, Caliber Computer Corporation, Canon Computer Systems, Inc., Casio, Inc., Centennial Technologies, Chaplet Systems USA, Inc., Chicony Electrics Company, Ltd., Citizen America Corporation, CNet Technology, Inc., Commax Technologies, Inc., Compaq Computer Corporation, Compex, Inc., CompuAdd Computer Corporation, Comtrade Computer, Inc., CTX International, Inc., Cypress Computer, Inc., D-Link Systems, Inc., Data General Corporation, Datalux Corporation, Dauphin Technology, Inc., Dell Computer Corporation, DFI, Inc., Digital Equipment Corporation, DirectWave, Inc., Dolch Computer Systems, Inc., DTK Computer, Inc. (A division of Datatech Enterprises Company, Ltd.), Duracom Computer Systems, Eastman Kodak, EPS Technologies, Inc., Epson America, Inc., Ergo Computing, Inc., EuroCom Corporation, Everex Systems, Inc. (A subsidiary of Formosa Plastics Group), EXP Computer, Inc., Farallon Communications, Inc., FieldWorks, Inc., First Computer Systems, Inc., First International Computer of America, Inc., FOSA Computer, Inc., Fujitsu Limited, FutureTech Systems, Inc., Gateway 2000, Inc., Global Village Communications, Inc., Hansen Information Technologies, Inc., Hayes Microcomputer Products, Inc., Hertz Computer Corporation, Hewlett-Packard Company, Hi-Tech, Hitachi Limited, HyperData Technology Corporation, Hyundai Electronics America, I/O Magic Corporation, Industrial Computer Source, Integral Peripherals, Inc., Intel Corporation, IntelliMedia Corporation, International Business Machines (IBM), IPC Technologies, Inc., J-Mark Computer Corporation, JDR Microdevices, Inc., Just Imagine, Keithley MetraByte, Keydata International, Inc., Kingdom Computers, Kingston Technology Corporation, Kiwi Computer, Inc., Leading Edge Products, Inc., Lexington Computer Research, Livingston Enterprises, Inc., Magic RAM, Mannesman Tally Corporation, Maximus Computers, MAXTECH/GVC Technologies Corporation, Mega Computer Systems, Mega Image, Inc., Micro Express, Micro-International, Inc., Micro-Intelligent Systems, Inc., Micron Technology, Inc., MicroStar Computers, Inc., MidWest Micro, Mintronix, Inc., Mitsuba Corporation, Mitsubishi Electronics America, Inc., Modgraph, Inc., Motorola, Inc., MPC Technologies, Inc., Natural Input Technologies, Inc., NCR Corporation, NEC Technologies, Inc., New Media Corporation, Noteable Computers, Inc., Olicom USA, Inc., Olivetti Personal Computers SpA, Panasonic Communications & Systems Company, Paravant Computer Systems, Inc., PC Importers, Inc., Pentax Technologies, Inc., Practical Peripherals, Inc., Prolinear Corporation, ProStar Computer, Inc., Proxim, Inc., Psion plc., Racore Computer Products, Inc., Revered Technology, Inc., Royal Electronics, Inc., Sager Midern Computer, Inc., SanDisk Corporation, Sceptre Technologies, Inc., Sharp Electronics Corporation, Siemens-Nixdorf, Sirius Systems Technology, Inc., Smart Modular Technologies, Inc., Smith-Corona, Sony Electronics, Inc., Swan Technologies Corporation., Tadpole Technology, Inc., Talkto Computers, Inc., Tandy Corporation, TDK Systems, TelePad Corporation Terminal Data Corporation, Texas Instruments, Inc., The Samsung Group, Toshiba Corporation, Tri-Star Computer Corporation, Twinhead Corporation, U.S. Robotics, Inc., Unisys Corporation, VOBIS Microcomputer AG, Winbook Computer Corporation, Wynn Data, Xircom, Inc., Zenith Data Systems Corporation, Zenon Technology, Inc., and ZEOS International, Ltd.
Frost & Sullivan is an international marketing consulting company that monitors the information technologies industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5434-72 World PC Cards Market and to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.
Report: 5680-71 Publication Date: June 1997 Price: $1995
SOURCE: Frost & Sullivan
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