Worldwide PDA Market Displays Weak Third Quarter Growth; Full-Year Decline Expected, According to IDC
27 October 2003 - 8:49PM
PR Newswire (US)
Worldwide PDA Market Displays Weak Third Quarter Growth; Full-Year
Decline Expected, According to IDC FRAMINGHAM, Mass., Oct. 27
/PRNewswire/ -- The worldwide market for handheld devices grew in
the third quarter of 2003, largely due to the introduction of
several new devices by Hewlett-Packard. According to IDC's
Worldwide Handheld QView, device shipments rose by 1.1%
year-on-year in 3Q03 and increased sequentially by 9.4% to 2.37
million units. The Palm Solutions Group maintained its top position
in the market, while Hewlett-Packard rose sharply, distancing
itself from number 3 Sony and moving closer to the number 1 spot.
Hewlett-Packard's 52.5% sequential gain came on the strength of
five new devices released at the end of 2Q03 as well as the
introduction of the h1935 during this past quarter. The recent
availability of two new models at the beginning of this quarter
should allow HP to continue its newfound momentum. However, as this
increase follows on the company's 16.7% sequential drop in 2Q03,
IDC believes such sudden growth to be the result of a careful
channel strategy designed to successfully manage its product
transition through one quarter of shipments. "This quarter's
performance represents a rare positive sign in a handheld device
market fighting competition and harsh consumer and enterprise
spending conditions. While personal information management has
proven to be the killer application for more than 25 million users
worldwide, handheld devices must evolve with new segments,
applications, and technologies if the market is to remain
relevant," said David Linsalata, associate research analyst in
IDC's Mobile Devices program. "Unless holiday season demand proves
particularly positive, the handheld device market will decline more
steeply in 2003 than in 2002 as it returns to 2000 levels." QView
Highlights -- Palm - Palm's market share declined from 41.8% in
2Q03 to 35.6% this quarter due to a slower than expected
end-of-summer sales of current models. However, Palm launched three
new devices at the beginning of 4Q03, the Zire 21, Tungsten E, and
Tungsten T3, all of which are poised to build on the strong sales
of their predecessors. -- Hewlett-Packard - HP experienced a leap
in market share from 17.6% in 2Q03 to 24.5% this quarter on the
strength of five new devices launched in June as well as the August
introduction of the new h1935. With this advancement, HP
significantly narrows the gap between itself and market leader Palm
and looks to continue its gains during the fourth quarter. -- Sony
- Despite a slight increase in sales, Sony's market share declined
from 11.9% in 2Q03 to 11.5% in 3Q03 largely due to increasing
shipments from HP. -- Dell - Dell experienced solid growth in the
Asia/Pacific market, but this gain was offset by slower sales in
Europe and an aging Axim product line. Dell's recent introduction
of the Axim X3 and Axim X3i, however, should once again spur sales
in 4Q03. -- Toshiba - With the introduction of the e350 and the
e750 in late June, Toshiba maintained its position as the number 5
vendor in the handheld market and experienced a slight gain in
market share from 3.5% in 2Q03 to 3.6% this quarter. Top 5 Vendors,
Worldwide Handheld Device Shipments and Market Share, 3Q 2003
(Preliminary) Rank Vendor 3Q 2003 Shipments 3Q 2003 Market Share 1
Palm 843,149 35.6% 2 Hewlett-Packard 581,000 24.5% 3 Sony 272,607
11.5% 4 Dell 135,600 5.7% 5 Toshiba 86,318 3.6% Other 450,059 19.0%
Total 2,368,733 100.0% Notes: -- Vendor shipments are branded
shipments and exclude OEM sales for all vendors. -- Handheld
devices are pocket-sized, either pen or keypad-centric, and are
capable of synchronizing with desktop or laptop computers. Handheld
devices are designed to access and manage data including office
documents, multimedia, and games. -- Handheld devices do not
include telephony but may include wireless capabilities which
enable Internet access and text communication. These devices
feature evolved operating systems or application environments, such
as the Palm OS, Pocket PC, Windows CE, Handheld PC 2000, Linux or
proprietary solutions and have the ability to download and run
applications and store user data beyond their required PIM
capabilities. Source: IDC, October 27, 2003 IDC's Worldwide
Handheld Qview provides device vendors, software developers,
service providers, and component suppliers with timely and accurate
information on the worldwide handheld market. The program provides
quarterly measurements of worldwide unit shipments and vendor
market shares. For more information about IDC's Worldwide Handheld
Qview program, please contact Demetrios Louloudes at 508-935-4356
or . About IDC IDC is the premier global market intelligence and
advisory firm in the information technology and telecommunications
industries. We analyze and predict technology trends so that our
clients can make strategic, fact-based decisions on IT purchases
and business strategy. Over 700 IDC analysts in 50 countries
provide local expertise and insights on technology markets.
Business executives and IT managers have relied for 40 years on our
advice to make decisions that contribute to the success of their
organizations. IDC is a subsidiary of IDG, the world's leading
technology media, research, and events company. Additional
information can be found at http://www.idc.com/ All product and
company names may be trademarks or registered trademarks of their
respective holders. DATASOURCE: IDC CONTACT: David Linsalata,
+1-508-988-6772, ; or Michael Shirer, +1-508-935-4200, Web site:
http://www.idc.com/ Company News On-Call:
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