Robust growth in MIDs expected through 2012

SAN FRANCISCO—Shipments of mobile internet devices (MIDs)—a nebulous product category encompassing everything from some ultra-mobile PCs to certain portable media players—are projected to grow at a compound annual growth rate of 50.6 percent between 2007 and 2012, reaching 416 million units, according to market research firm iSuppli.

ISuppli (El Segundo, Calif.) defines MIDs as devices that have integrated connectivity for wireless local area network (WLANs), wireless metropolitan area networks or 3G-or-higher worldwide wide area networks. They also must a maximum-sized display of 8-inches in the diagonal dimension, an instant-on function, an always-connectable capability and a full day's worth of battery life under typical usage scenarios, according to the firm's definition.

Francis Sideco, iSuppli senior analyst for wireless communications, noted that the market for MIDs encompasses segments of various product markets, including ultra-mobile PCs (UMPCs), netbooks, smartphones, portable navigation devices, e-book readers, portable media/MP3 players and handheld gaming devices.

"Each MID device segment enjoys varying levels of penetration in the market, with smartphones leading the way, followed by e-book readers, and to a lesser extent, UMPCs and gaming devices," Sideco said.

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Smartphones are projected to dominate the MID segment in the forecast period from 2008 to 2012, iSuppli said. The firm estimates that about 60 percent of all smartphones now are considered MID-class devices, but that figure will rise to cover 100 percent by 2012.

A key gating factor for smartphones is the inclusion of WLAN or 3G connectivity, iSuppli said. Applications like video downloads, gaming and full Internet browsing will proliferate when smart phones attain 3G-speed downlink and uplink capabilities, according to the firm.

Thirty-five percent of e-book readers shipped in 2008 qualify as MIDs by iSuppli's definition, the firm said. The percentage is expected to rise to 76 percent by 2012, the firm said.

The percentage of UMPCs that were considered MID-class is projected to rise from 2 percent in 2008 to 28 percent in 2012, iSuppli said, with more expected to incorporate instant-on capabilities and better battery life.

Sideco has authored new report about MIDs, which is available for sale through the iSuppli website.