“One of biggest barriers for consumers is cost,” says senior analyst Andy Bae. “Consumers in Asia believe that the Bluetooth headset is comparatively expensive; they also seem to underestimate its voice quality.”
Bluetooth has achieved its greatest penetration to date in mobile handsets, as mobile operators have demanded continuous support from manufacturers. In South Korea, the penetration rate in mobile phones reached 51% in 2007.
Bae adds, “Streaming music services over mobile networks, such as Japan’s Chaku Uta, will be key drivers of Bluetooth inclusion in cellular handsets.”
The positive uptake in the cellular sector also produces a ripple effect for other devices. With increasing consumer awareness, notebook manufacturers now consider Bluetooth to be an ideal medium for exchanging files and data with peripherals and devices such as printers and digital cameras.
Bluetooth will still face challenges from competing short-range wireless technologies. In Asia, there are home-grown technologies to deliver music, voice, and video within a small radius. These include Binary CDMA, Wireless USB, and GiGa-Fi, which are all discussed in the ABI Research study, in order to compare their market positions and technical features with Bluetooth.
“Those technologies may have superior transmission capabilities,” notes Bae. “But there is no other technology as well suited as Bluetooth for the transmission of audio services - nor does any other technology maintain the same price points or the same well-established market position.”