Research firm IDC sees double digit growth in the future of worldwide Bluetooth semiconductor revenue. The firm is predicting an annual compound rate of 14.5 percent between now and 2012, with revenue going from $1.7 billion in 2007 to $3.3 billion by 2012.

It won't happen immediately. Due to the economic slowdown, IDC expects 2009 to be flat with 2008 to down by two percent before recovering with alacrity in 2010. The vast majority of that revenue comes from mobile phones and headsets. Mobile phones are 58 percent of the overall Bluetooth market and the headsets, almost a fashion accessory in places like the Silicon Valley, are another 12 percent of the market.

The remaining 30 percent of the Bluetooth semiconductor business is scattered among peripherals like keyboards, mice and controllers. For example, the wireless controllers in Nintendo's Wii console use Bluetooth, since the controllers are designed with motion detection as gamers swing the controller around to mimic on-screen action.

Unlike a traditional wireless device, which uses a radio frequency, Bluetooth does not need a clear line of sight to transmit its signal. It can also transmit up to 30 feet, much further than the signal used in a wireless keyboard or mouse.

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