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
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?”