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Internet appliances
Coming to a kitchen near you
Better make room next to the microwave, because a new crop of internet appliances (IA) is on the way.
According to a report by the Cahners In-Stat Group, line-powered IAs will increase by a factor of 15 between now and 2004. For consumers it should mean easier and cheaper access to the internet. For ISPs, it means more customers,more revenues and, potentially, fewer customer support problems.
The report covers “line-powered Internet appliances” and not the wireless variety, so don´t confuse these devices with things like cellular phones. While some may be “cordless” they will be talking to a base station, meaning they´re “tied” to a telephone line, a cable modem or a DSL line. They include TV set-top boxes, web phonesand internet terminals.
The web phones lead the pack with an estimated five-year compounded annual growth rate (1999 to 2004) of 202 percent. The concept here is that consumers will begin to rely on easier-to-use, cheaper devices to access the internet instead of more powerful computers.
GROWING MARKET
Overall, the study predicts that the sale of line-powered internet appliances will jump tomore than 37 million units in 2004, up from slightly over 2 million in 1999. Currently, TV based appliances are the leaders of the group. But their strength will begin to dwindle as Web phones become more dominant. Ultimately, it´s internet terminals that will rule the market, according to the study.
The TV-based appliances include such devices as Web TV, AOLTV and others that use a televisiondisplay and set-top box. Web phones, which include products like the iPhone by Info Gear, allow users to browse the Web and send and receive e-mail, while adding the features and functions of a telephone. Internet terminals typically include a larger flat panel LCD screen, a stylus or mouse and, in some cases, a keyboard. There are several configurations including desktop/countertop, tablet type andhandheld notepad type.
Driving this explosive growth of IAs is the desire for internet access.
“Internet appliances will appeal to those who have been put off by the costs, headaches and hassles of the PC”, said Joyce Putscher, director of In-Stat´s consumer and converging markets and technologies group.

EASE-OF-USE AND SETUP
The devices promise a number of key features. Since most of themdon´t have operating systems in the conventional sense, they come on instantly without the need for a boot up cycle. When they are done remotely. Most will also be inexpensive. Currently, manufacturers of internet terminals are looking for a price target of about $ 100. Web phones will be more expensive, but add the telephone features.
“Internet appliances will also appeal to PC-savvy people whowould like an additional internet access device for the home but don´t want the cost of another PC,” Putscher said. “Many will want one for the family room to check on things like the weather or restaurants. Others will want them for the kitchen so they can check recipes.”
The explosion in IAs should mean a bonanza for ISPs since more people will be looking for high-speed internet access. Ofcourse, this assumes that the manufacturers make the devices simple. Unless they´re easy enough for your mother to set up in that big pile in the basement next to the 8 track player, the do-all food processor and the Thigh Master.
The trouble seems to be that everyone wants to pack more and more features into the devices. “Hey, we have some extra memory and some space, why not include a digitalalarm, a word processor, a hard drive, a television, a pager, a photo editor, a video camera and a partridge in a pear tree?”
KEEP IT SIMPLE
Just keep it simple. An on/off switch, a simple pointing device and a basic keyboard are all you need.
Adding buttons, alarms and lights will only ensure that mom won´t use it and Dad will stick with the PC.
But, if they get it right this time, then the...