|
|
 THE STAT 26Percentage of wireless customers who use their cell phones to take picturesMore Vitals
| |
JUNE 21, 2005
Nearly Everything Gets Unplugged Consumer-electronics companies aren't sure yet just what folks will want in their broadband wireless gizmos, but that isn't stopping them Wireless technology has liberated the laptop computer. Now consumer-electronics makers are using it to untether everyday devices from cameras and cell phones to TVs and refrigerators. Get ready for the next wave of wireless gizmos. This October, Eastman Kodak (EK ) will bring out a digital camera that will let you snap a photo and immediately show it to a friend on a Wi-Fi-enabled PC or TV. And by early next year, you'll be able to zap that picture to a screen on a refrigerator when Samsung unveils an ice box with a wireless, detachable display that can function as a TV -- or gallery for family photographs (for these and more new products, see our Slide Show, "A Blitz of Wireless Broadband Gadgets"). Sounds cool? Sure. But this is just the start. Wait until consumer-electronics companies really figure out what works wirelessly and what doesn't. Right now, they're not so sure. They're only beginning to explore how to turn their products into wireless wonders. Many don't even know which features and applications consumers want. That's why a lot of the products that companies have recently introduced -- or that are in development -- "are just interesting toys, proof of concept," says David Chamberlain, an analyst with consultancy In-Stat. SWITCH-HITTING PHONES. Nor do manufacturers have a feel for how much consumers are willing to pay for wireless gadgets and related services. "There's a lot of uncertainty," says Mark Kaish, a vice-president at telco BellSouth (BLS ), which is testing several wireless broadband technologies and related business models. Following six months of lab tests, BellSouth in July will begin a small trial of phones that offer both cell and Wi-Fi connectivity. BellSouth expects consumers to pony up for a new generation of such dual-capability phones because they promise to cut users' monthly bills. Consider this: About 40% of cell calls today are made from within buildings. But with a phone that can switch to Wi-Fi when it picks up a wireless broadband connection, consumers could make those calls over the Internet -- from home, office, or some 17,000 wireless hot spots -- for much less, if not free. Better yet, unlike their predecessors, Wi-Fi phones from the likes of Vonage and Hop-On are priced at well below $100, which could finally push this technology into the mainstream. Other customers will appreciate new audio and video capabilities soon to be available on some cell phones. Watching the sports highlights on a handset could become a lot more commonplace. Motorola's (MOT ) upcoming E815 cell phone can stream music videos and movie trailers through Verizon Wireless's superfast cell network, available in several dozen cities. WIRELESS FROM BIRTH? At this early stage, however, broadband wireless devices and related services are still quite pricey. For services to reach mass adoption, prices will have to be cut in half, says Monica Paolini, founder of wireless researcher Senza Fili Consulting. For example, Paolini points out, only several thousand U.S. cell-phone customers -- less than 1% of the total subscriber pool -- are using broadband phone services from the likes of Verizon Wireless. But their ranks should reach 10% of all cell-phone subscribers by 2007, as prices plummet, she says. What's more, if vendors are going to win widespread acceptance, they have to move away from adding wireless technology to products that have limited appeal. Most people won't pay hundreds of dollars for a refrigerator that can connected to the Internet, say analysts. Still, once the technology becomes mainstream (read less expensive), most consumer-electronics devices -- and even such old-age contraptions like washing machines -- will feature high-speed wireless connections, says Craig Mathias, founder of wireless consultancy Farpoint Group. "When you are born, they'll give you a wireless phone number," he says, only half-joking. And it won't seem odd for your oven to dial up your car to flash you a message to put the pedal to the metal because dinner is almost ready.  By Olga Kharif in Portland, Ore. Edited by Ira Sager
BW MALL
SPONSORED LINKS
Buy a link now!Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2005, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version