It’s a Small New World for the Next Generation of Communication Devices

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This much is for certain: the new video capable iPod will be a hot seller this Christmas season.


But Apple Computer Inc. won’t be the only beneficiary of the sudden push by the networks and studios to get content onto iPods and other handheld wireless devices such as cell phones.


The Razr V3 from Motorola Inc. and the just-released VX 9800 from LG Electronics two handheld devices with advanced video capability are expected to be must haves for tech savvier users.


“They are particularly popular with the younger crowd, who drive that market,” said Gabriel Nash, a sales representative at World Wireless in Beverly Hills, a reseller of cellular services and accessories.


Last month, Motorola announced that it had sold about 6 million of the Razr phones, helping drive $1.75 billion in third-quarter profits. The V3 is its top-of-the-line model and includes a 4-inch, full-color screen with a resolution comparable to higher-end monitors. It costs about $200 when bought with a service plan.


Motorola had wanted to introduce an even more advanced version called the V3x before Christmas, but has delayed the release until early next year. That model will be capable of two-way video calling in real time.


Already on the market is LG’s just-released VX 9800, which was made available to Verizon Wireless customers in September. The slick-looking silver device is a high-speed capable data phone that features a large color display, camera, mini memory-expansion slot and a full keyboard.


Nash said that the VX 9800, which sells for about $300 after rebates with a two-year Verizon contract, has drawn a lot of attention, although it’s still outsold by standard cell phones. However, even among the tech savvier crowd, video capability is not necessarily the only sales driver.


Ken Muche, a spokesman for Verizon Wireless, said that the use of data services such as e-mail, text messaging and Web browsing have snowballed, up to nearly 10 percent of Verizon subscribers.


“We have a definite need to meet the consumer demand for quality in those areas,” Muche said. “We have seen a ratcheting up of things like on-screen resolution, increase in clarity of audio and other multi media formats.”


That kind of demand has made Danger Inc.’s $250 Sidekick II a hot seller. Designed for T-Mobile’s cellular network, the handheld, full-keyboard device that also works as a cell phone is similar to Research In Motion Ltd’s BlackBerry, but is aimed at a younger crowd.


Celebrity Paris Hilton and rapper Snoop Doggy Dog act as spokespersons, and the device comes with AOL Instant Messenger and Yahoo Messenger. It does not have video capability, however.


T-Mobile does not release sales data for the Sidekick II, but according to the research firm Gartner Inc., more than 200,000 of the Sidekick II and pocket PC Home Edition units shipped last quarter.


For now, most cell phone users aren’t even interested in text messaging.


“There is a lot more emphasis now on what your phone can do than there used to be, but there is still a large part of the market where people want just a phone,” said Kent German, a senior editor with CNET Networks Inc. who reviews cell phones. “Some people sign a cellular contract and think, ‘Why am I going to pay $100 more for a phone that can e-mail?'”

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