With all the Bluetooth development under way, why can't distributors can't own a piece of the pie. Many provide development tools, reference designs and software for application-specific products. So why not extend that to Bluetooth?

A recently revised report from researcher Allied Business Intelligence Inc. projects Bluetooth-enabled chip set shipments will hit 1.2 billion units in 2005, up from 33.8 million units in 2002. Though it may be wishful thinking, the technology appears to show promise as a demand driver not only for chip sets and modules but also for such less-sexy components as sockets and other passive devices.

But there are roadblocks to overcome, not the least of which is whether consumers understand the technology and feel a compelling need for it. Clearly, the first products to incorporate Bluetooth will be high-end consumer offerings, which will trickle into the marketplace over the next couple of quarters.

Market researchers believe it will, particularly now that chip set prices have slipped below the coveted $5 target. In December, Motorola announced first-quarter 2003 million-unit volume pricing of $4.20 for its Integrated Bluetooth Radio solution. And engineering samples of Toshiba's single-chip Bluetooth solution will be available in February, followed by volume production in July at $5 each in lots of 100,000.

Another bit of good news is that component makers-including chip set and module makers-are well on their way to supporting Bluetooth-equipment manufacturers. In conjunction with announcements of volume production, key component makers have announced alliances with Bluetooth software and solution companies during the past month.

Let's hope the activity portends good news for 2003.