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Study: Net Appliance Sales to Soar

After a brutal year in 2000, Internet appliance (IA) vendors will soon see a turnaround, according to a study by Cahners In-Stat Group released Tuesday.

The Cahners study predicts that IA sales will grow at a rate of 40 percent a year through 2005. The study covers both free-standing "Internet terminals" such as Web tablets and desktop devices and devices that attach to televisions such as WebTV and AOLTV set-top boxes.

Initially, the TV-based devices, such as AOLTV and WebTV set-tops, will do better but eventually the freestanding IAs will surpass them, according to Brian O'Rourke, a Cahners In-Stat analyst.

The study said that total IA sales were about $219 million in 2000 but will be $1.3 billion in 2005. Much of that growth will occur outside of North America and Western Europe, where PCs are firmly established, according to the study.

The findings are part of the report: "Internet Appliances: Escaping the PC Shadow?"