SAN FRANCISCO -- Dozens of chip makers and OEMs are expected to unveil new products at this week's Bluetooth Developers Conference here, but there are signs that the Bluetooth market may get pushed out another year, possibility to 2003 or beyond.
Originally devised by Ericsson, IBM, Intel, Nokia, and Toshiba in 1998, Bluetooth was supposed to hit the mass markets in late-1999, according to analysts. Bluetooth was designed to become the key technology for linking cellular phones and notebooks over a 1-megabit-per-second wireless network.
But from the very beginning, Bluetooth has been beset with interoperability, cost and other problems, pushing out the mass adoption of this technology, according to analysts. Apparently, many--if not all--of these problems have not been solved yet, according to analysts.
Bluetooth was a complete bust in 2001, according to analysts. Now, analysts and industry experts believe that the "mass adoption" of Bluetooth will not even occur in 2002. Chip makers have or will ship Bluetooth-enabled parts in 2001 and 2002, but the volumes will be lackluster at best, analysts said.
"Bluetooth will happen, but not in 2002," observed Dwight Decker, president and chief executive of Conexant Systems Inc. The Newport Beach, Calif.-based company is a supplier of communications chips, including Bluetooth-enabled devices. "Bluetooth is a 2003 product," Decker said in a recent interview with SBN.
Cellular-phone makers have reportedly designed their new handsets with Bluetooth-enabled sockets, sources said. But it's unclear if or when OEMs will incorporate their systems with real Bluetooth chips, due to cost issues, sources said.
The Conexant executive also pointed out that the Bluetooth market has taken a backseat to some new and rival wireless protocols, especially 802.11a, 802.11b, and 802.11g. "Bluetooth is still important, but it is not as important as 802.11," he added.
Others believe that Bluetooth will become a reality--over time. According to the In-Stat Group Inc. of Scottsdale, Ariz., the Bluetooth chip set market is on track to ship 13 million units in 2001. By 2005, Bluetooth chip set shipments will still rise sharply and hit 780 million units, according to In-Stat.
Analysts believe that the technology faces some major challenges. "Once people are educated on what the benefits are, demand will rise for products that include Bluetooth connectivity, as long as prices of products are reasonable," said Joyce Putscher, a director with In-Stat. "The challenge lies in getting the message across, and being able to educate the general public correctly in a variety of ways and channels."
But still, chip makers keep pressing on with Bluetooth, given the activity at the Bluetooth Developers Conference. The event runs Dec. 11-13 in San Francisco.
Here are some early announcements for the event:
*Conexant today announced an embedded stack development platform for its Bluetooth wireless technology system solution.The development platform features a generic lower stack interface, documentation, and development boards. This allows developers to embed their own, upper-layer protocol stack and applications directly onto the Conexant's Bluetooth-enabled ARM7TDMI baseband controller, eliminating the need for an external host processor and reducing system costs.
*National Semiconductor Corp. is forming a Bluetooth Stack partnership program to propel its line of Bluetooth-enable devices in the market. National named San Deigo-based Widcomm Inc. as the first member of the partnership program.
*Silicon Wave Inc. of San Diego today announced the availability multi-chip modules, based on its Bluetooth-enabled radio modems and baseband processors. Silicon Wave's Known Good Die (KGD) program offers OEMs to develop small-footprint, Bluetooth-enabled devices.
*Silicon Wave also announced the availability of a Bluetooth reference design kit, based on the company's SiW1701TM Radio Modem and SiW1750TM Baseband Processor. The kit enables OEMs to develop a low-cost Bluetooth solution.
*Taiyo Yuden Co. Ltd. of Schaumburg, Ill. announces the world's smallest radio-frequency modules for Bluetooth-based wireless communications devices. Measuring only 7.0-- x 7.0-- x 1.8-mm, the ultra-compact RF module employs a LTCC (Low Temperature Co-fired Ceramics) substrate using flip-chip assembly techniques to mount the semiconductor.
