We have just published a major piece of research into what amounts to a new digital consumer device segment: Mobile Internet Devices (MIDs). With screen diagonals of between 4” and 6” these touch-screen handheld gadgets fill the gap between web-browsing cellphones (smartphones) and miniature portable computers (for example UMPCs and netbooks). They’re the latest attempt by computing, mobile and consumer electronics companies to create a market for handheld gadgets that give consumers access to the full range of Internet applications they are familiar with on their PCs. Our estimates indicate that annual revenues will exceed $17 billion by 2014. Global sales in 2008 are expected to reach 1 million units, and will continue to grow at an average annual rate of 102% to reach 69 million units by 2014. The report also examines the main rivalry in technology platforms between Intel and ARM. ARM dominates the mobile phone industry today, in spite of several attempts by Intel to penetrate this lucrative industry. Intel is hoping that MIDs will finally give it the opportunity to build a significant business outside of its PC market stronghold. A key part of Intel’s strategy will be its Moorestown system-on-a-chip, but until this arrives in 2009 or 2010 ARM-based vendors will be able to use this window of opportunity to establish market leadership positions. The report concludes that the proven advantages of the ARM ecosystem in mobile devices will eventually outweigh those of the Intel platform and that ARM devices will comprise the majority of MID sales thru 2014. Client Reading: Mobile Internet Devices: Heavyweights Do Battle For $17Bn Prize