Strategy Analytics asserts that the market for Bluetooth-enabled devices grew to more than 272 million units in 2005, twice the number of units shipped globally in 2004, as outlined in "Bluetooth Doubles: CSR Still Gaining Momentum." To date, Bluetooth for hands-free cell phones has driven the adoption of Bluetooth. In the future, more users are expected to want Bluetooth-enabled cell phones and headphones for listening to high-quality stereo music.

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This Strategy Analytics report covers Bluetooth chip vendors, and examines chip technology, strategies and positioning, in light of the expected growth of Bluetooth in cell phones and other applications.

According to Chris Taylor, director of the Strategy Analytics RF & Wireless Component Service (RFWC), "Cambridge Silicon Radio (CSR) has maintained a strong lead in the Bluetooth chip market by aggressively reducing cost, power consumption and footprint, while increasing data rates and adding features to its chips. This has allowed it to stay ahead of powerhouse competitors, including Texas Instruments and Broadcom."

"CSR is well positioned to maintain market share in cell phones, headsets, notebooks and automotive applications," Taylor continued. "However, the anticipated marriage of Bluetooth with ultrawideband (UWB) could move the advantage to Freescale, Texas Instruments and other UWB players in emerging high data rate applications, such as short-range, wireless streaming video."