Young consumers fuel surge of cool gadgets

It doesn't seem too long ago that cell phones were only for the elite and no one had ever heard of an mp3 player. But technological innovations have hit the market quickly in the 21st Century - and what's hot today could easily find itself in the yard sale pile tomorrow.

Teenagers play a big role in deciding what the next must-have gadget will be. They are part of a generation that has grown-up with technology at their fingertips. They're not afraid to try something new. And they're not afraid to snub something that comes across as a waste of their money.

Young people are often toying with products that adults are still trying to understand, like the latest cell phones with built-in digital cameras.

That explains why teens are sometimes toying with products adults are still trying to understand. Take, for example, the newest advancement in cellular phones: the built-in cameras.

Camera phones have proved popular among teenagers but they still searching for a place in the mainstream tech market.

That day may be just around the corner, industry experts say.

"Camera phones are not a fad," said Tim Bajarin, president of Creative Strategies, a Silicon Valley technology consulting firm. "Camera phones are going to be one of the hottest areas" of technology in coming years.

The picture quality on existing camera phones is poor. But as it improves, it will be common to see adult consumers snapping vacation photos with a phone instead of a digital camera.

"I think cell phones will transcend into something that is much more complete, really a full-function device," said Rob Enderle, a fellow with Forrester Research.

In today's market, multi-functionality and ease-of-use is important.

Mountain View technology company Vega Vista has developed a flash memory card with a built-in motion sensor that, when plugged into a handheld computer or cell phone, allows navigation by physically moving the device.

"What we do is enable one-hand operation of any 3-D interface," said Sina Fateh, CEO of Vega Vista.
The company is also working on gesture recognition technology that would let a cell phone know to answer the call when users move it toward their ears.

Sometimes, creating the next best tech gadget really means morphing several existing technologies into a single product.

Earlier this year, Microsoft teamed with Milpitas-based Creative Technology to develop and market a "Media2Go" device, a video and audio player that promises to store thousands of music and photo files, as well as hundreds of hours of video.

"There is even discussion about adding TV-out functionality so that you can hook it up to your monitor or TV and watch videos over that," said Phil O'Shaughnessy, Creative Technology spokesman.

The product remains in the hands of engineers as they fine-tune its capabilities but the companies say it will hit retail shelves by this year's holiday season.

The big question is: Will consumers buy a product that lets them watch action-packed movies on a 3-inch screen?

Mike Langberg, personal technology editor at the San Jose Mercury News, has his doubts.
"Do you really want to watch 'Terminator 3' on your cell phone screen?" Langberg asked.

What about video games?

Nokia, one of the leading manufacturers of cell phones, is gearing up for this year's release of N-Gage, a cross between a portable gaming device and a cell phone.

Built for hardcore gamers, N-Gage sports a full-graphics color display with split game controls. It also has a digital mp3 player, a built-in FM radio and the ability to play video clips.
And it has wireless capabilities that allow gamers to play against one another in real time.

N-Gage has the potential to make it, partly because it will be an immediate magnet for teens. But Langberg warns that not every cool new product that hits the market will be a success.

"Nine out of 10 new ideas will fail," Langberg said.