From camera phones to wireless computer connections, the freshest crop of gadgets in years are being unveiled to mainstream buyers at this week's CeBIT trade fair, but few may be in a spending mood.
Global economic malaise and the threat of war in Iraq have cast a pall over the technology sector and its traditional sales pitch -- spend money on technology to save money through productivity gains -- is wearing thin.
But vendors converging on the world's biggest showcase of new hardware and software in Hanover, Germany, are expected to pull out the stops to generate some demand.
"We're going to see camera phones from every manufacturer and many other weird and wonderful mobile devices as manufacturers struggle to drive the replacement market," saidanalyst Ben Wood at market research group Gartner Dataquest. Many potential customers will be looking for clear-cut financial benefits from the new gadgets.
"[IT] products and services that shave costs through efficiency gains, help retain customers, or solve the burgeoning integration dilemma in corporate IT have the best chance at success this year," said Tom Pohlmann, a director at Forrester Research. The CeBIT fair grounds will feature fast wireless Internet access over short-range radio networks. These so-called Wi-Fi connections are due to receive their biggest boost ever next week as chipmaker Intel Corp. formally unveils chips that will allow most notebook computers manufactured by year-end to reach the Internet without wires.
Such wireless Internet access networks on laptop computers and other devices promise to become commonplace in cafes, hotels, airports, schools, offices and public places -- pretty much wherever computer users congregate -- in the coming year.
While the latest network gear and entertainment gadgets from Silicon Valley, Japan and China will feature prominently, another featured theme at this year's CeBIT is the battle to define and dominate the "Connected Home," the industry's phrase for the growing links between home computers, home entertainment and other appliances over the Internet. "What is emerging is a once in a decade battle for a new market that could have a dramatic impact on the consumer electronics, PC, telecom and media businesses," Gottfried Dutine, a board member at Philips of the Netherlands.
"Software companies will tell you the PC will be the 'server' of the connected home," Dutine said. "Other electronics companies will argue that the TV will be the center of it. Others will even make a case for the mobile phone."
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