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News Release from: Strategy Analytics
Edited by the Electronicstalk Editorial
Team on 14 February 2006
Quantifying the digital home opportunity
US sales of IP-enabled devices in 2005 rose by over 500% to 16 million units, as consumers rushed to buy IP-enabled games consoles, entertainment PCs and digital video recorders.
The connected home era has finally arrived, according to the latest research from Strategy Analytics US sales of IP-enabled devices in 2005 rose by over 500% to 16 million units, as consumers rushed to buy IP-enabled games consoles, entertainment PCs and digital video recorders
This article was originally published on Electronicstalk on 4 Nov 2005 at 8.00am (UK)
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This report: "Quantifying the digital home opportunity", predicts that by 2010 US households will own more than 330 million IP-enabled devices that will be able to share and access music and video across home networks.
"Connected", or "IP-enabled", devices allow consumers to share content and entertainment applications across a home network.
Major technology providers, such as Cisco/Linksys, Intel and Sony, are heavily promoting a new era of digital consumer electronics built around the connected home network.
Early success stories include portable gaming devices from Sony and Nintendo, Microsoft's Xbox 360 and TiVo's latest DVRs.
Peter King, Connected Home Devices Service Director, said: "Consumer technology vendors who ignore the fundamental industry shift toward IP-enabled devices will be left behind".
"Our research finds that 7% of the digital consumer electronics market was IP-enabled in 2005, compared with only 1% in 2004".
"This trend will continue during 2006 as more and more manufacturers add connectivity to flat panel TVs, DVD players, digital cameras and cellphones".
"But technology vendors must analyse each market segment on its own merits: connectivity will penetrate some segments faster than others".
David Mercer, Digital Consumer Practice VP, adds: "The digital home industry will be transformed as new entrants embracing the connected home take share from established players".
"Successful vendors will focus on helping consumers overcome the complexities of installing and using networked entertainment devices".
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