Bluetooth will decay, analyst warns

Technology is at risk of being overtaken by rivals

Sales of Bluetooth-enabled products will double next year and vendors should incorporate the technology into more products, according to a recent report from market watcher Context.

But Context warned that Bluetooth risks being taken over by rival up-and-coming technologies such as Ultra Wide Band (UWB).

"Bluetooth has three to four years before it's taken over by UWB, but it still provides some great opportunities for resellers," said Funda Cizgenakad, marketing developer at Context.

But Steve Muttram, managing director of distributor Portable Add-Ons, told CRN he has more faith in the technology. "Bluetooth probably has a greater longevity than Context's figures suggest. It has come a long way and is well developed," he said.

"Resellers won't make profit by focusing just on Bluetooth because it's a narrow part of mobile communications. They must look at the bigger picture."

The Bluetooth Future Trends and Opportunities report said the technology has "passed the test of time", and this year emerged as an established wireless technology. The report predicted sales of Bluetooth products will double each year until 2006, with 1.2 billion Bluetooth products expected worldwide by 2009.

Context believes vendors can still benefit from Bluetooth because it offers a "window of opportunity", allowing development of more products incorporating the technology. Context also forecast Bluetooth mobile phone sales will increase to 720 million by 2009, representing 80 per cent of all mobile phones enabled with the technology.

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