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The War of Devices
Specialized versus converged. Mobile converged devices saw growth of 67.8% in the first quarter of 2006 over the same quarter a year ago. Does that spell doom for specialized devices?
Thursday, August 31, 2006

Watch Star Wars or Baywatch on 2”x2”? That's something you may not want to do unless you are traveling. There it will be almost like a godsend. Now, if the same device lets you talk to others, and also has a camera, an entertainment console, PDA, GPS and other applications on it, won't it be cool? As more and more converged devices get to the markets there are questions that customers are starting to ask? Do I really need a super gadget? Will it be able to provide the same features that a specialized device can? What will be the level of quality of say, camera and game player, compared to using two specialized devices? Will a teenager experience the same thrill if he played the Grand Theft Auto on the handheld instead of his latest PlayStation?

Shyam malhotra
editor-in-chief VOICE&DATA

So what factors will define the shift towards converged devices? The normal parameters like quality, convenience, performance, features, price factor, usability, accessibility, coolness factor and entertainment value would obviously apply. But is that all?

Take an example. Smart phones are converged devices which are becoming more powerful. Once WiMAX becomes mainstream, you will be able to get broadband speeds on your mobile device. New phones with high memory can directly download and playback songs with reasonable quality. But not all consumers may be willing to pay the extra price of music player integration. The kids may love this feature but the business user may not.

Advancing screen technology will gradually enhance the experience of watching video on a handheld. But is that a substitute for watching a full-screen movie in a theater or even on the TV. The handheld will be a good option to catch up with movies, news or your favorite soaps while on the move, but many viewers will still want to curl up in front of the TV with a steaming cup of coffee and their favorite blanket.

Games will swing both ways. Simple games that don't boast of complex animations and environments such as Tetris and Snake will remain popular on the mobile devices. You will see many more such games being developed, especially for this market. Yet, for complex games like racing and combat genres where the thrill comes from the big screen and life-size joysticks, gamers will go for specialized game consoles such as PlayStations and Xboxes.

Cameras could go the games way. For quick on the move convenience shots the camera on the mobile would suffice. But there would be strong competition from the slim digitals that are less bulky than most phones. And give considerably better results. Even though the camera-on-phone technology is becoming more advanced by the day, it will remain more of an amateur's toy. For anything more than the instant capture moment the professionals would have to stay with the specialist camera.

According to IDC, 2005 was a landmark year for converged mobile devices. They shipped a record 56.6 mn units. Both new and established players introduced new products offering wider choice to the consumer. The growth continued in the first quarter of 2006, which saw shipments of 18.9 mn units-an increase of 7.5% from the fourth quarter of 2005 and 67.8% compared to the same quarter a year ago. IDC predicts the demand for these devices will flourish into 2006 and beyond into 2010.

But will they spell doom for the specialized devices. Unlikely. The scenario that is most likely to emerge is one of co-existence. Most customers will carry a converged super gadget but will also possess specialized devices for their primary needs of watching videos or films, playing games, working on reports and databases and taking pictures.

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