Apple's FireWire Making Come Back, Especially in Consumer Electronics

While Apple's FireWire (the 1394 protocol) is being strongly challenged by USB 2.0 in computer and peripherals markets, its life in consumer electronics (CE) is improving, In-Stat reported. Digital televisions, cable set top boxes, and DVD recorders are all driving 1394a growth in the CE segment, the high-tech market research firm said. In addition, the High-Definition Audio Video Networking Alliance (HANA) has endorsed FireWire as a transmission medium for high-definition content, a development that may spur adoption of FireWire in home video networks.

In the computer world, FireWire has had success, particularly in notebooks, but the low rate of adoption of FireWire outside of Apples own computers led Apple to remove the FireWire interface from its wildly popular iPod devices in favor of USB 2.0. However, Microsoft has announced that it will support 1394b in its next-generation Vista operating system, which may breathe additional life into FireWire in the Windows-based computer segment.

"The CE segment is expected to surpass the combination of the PC and PC peripheral segments in 1394 devices by 2007," says Brian O'Rourke, In-Stat analyst.

Recent research by In-Stat found the following:

• The overall worldwide market for 1394-enabled devices will grow from 115.8 million units in 2005 to 219.9 million in 2010.
• If HANA is successful in driving 1394b as a home networking technology, In-Stat expects to see 1394b in wall plates or separate boxes, such as gateways, rather than in CE devices.

The results of In-Stat's research is very good news for Apple's FireWire protocol. [Bill Fox]