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ARM Will Beat Intel in $17 Billion Mobile Internet Device Market

Sales of Mobile Internet Devices (MIDs) will exceed $17 Billion annually by 2014, but Intel-based products will take a minority share, according to Mobile Internet Devices: Heavyweights Do Battle For $17 Billion Prize, just released by the Strategy Analytics Connected Home Devices service. MIDs represent the latest attempt by computing, mobile and consumer electronics companies to create a market for handheld gadgets that support the complete range of Internet applications familiar to PC users. This report predicts that global sales in 2008 will reach 1 million units, and will continue to grow at an average annual rate of 102% to reach 69 million units by 2014.

“Intel’s Moorestown system-on-a-chip will be critical to the company’s MID strategy,” says Peter King, Director, Connected Home Devices. “But until this arrives in 2009 or 2010, ARM-based vendors will use this window of opportunity to establish market leadership positions.” The report concludes that the proven advantages of the ARM ecosystem in mobile devices will eventually outweigh those of the Intel platform and that ARM devices will comprise the majority of MID sales thru 2014.

Strategy Analytics expects most MIDs will feature multiple wireless radios, including Bluetooth, WiFi and cellular 3G. The report also identifies Wimax and GPS (Global Positioning System) as features that will prove increasingly popular.

“Mobile Internet Devices will play an important strategic role in extending the Connected Home Ecosystem into the mobile world,” notes David Mercer, Vice President of the Strategy Analytics Digital Consumer Practice. “The wireless connectivity of MIDs will allow users to access their digital content libraries wherever they happen to be.”

Executive Summary
The recent emergence a new device segment, Mobile Internet Devices, represents the latest attempt to create a market for digital consumer devices that straddle the traditional divide between home and mobility. Our research concludes that high prices will restrict sales initially, but that global demand for MIDs will eventually build towards annual sales of 69 million units exceeding $17bn by 2014. While wireless connectivity will be supported universally by WiFi and Bluetooth, and optionally by cellular and Wimax, inevitably it is technology platform developers such as Intel, Qualcomm, ARM, AMD, TI and Via which are fighting for mindshare with consumer device vendors during this early stage of market fragmentation. This report presents an in-depth survey of the challenges and opportunities facing the PC, CE and cellular device vendors as they address this emerging market. It assesses drivers of future demand, and provides a six year global market forecast, segmented by volume, revenues and wireless technology, with regional breakouts for the European, US, Japan, Asia-Pacific and Rest of World markets.

Digital Consumer Analyst Blog: http://www.strategyanalytics.com/blogs/dmercer

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About Strategy Analytics
Strategy Analytics, Inc. focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems Implementation Strategies and High Frequency Market intelligence. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com

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