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PDA Sales Slide Continues

4/28/2006 12:43:00 PM Eastern

Framingham, Mass– Marking its ninth consecutive quarterly loss, the handheld PDA market fell during the first quarter of 2006 by 22.3 percent over the same period in 2005, said IDC.

Worldwide shipments for the quarter totaled 1.5 million units, dropping from over two million units in the fourth quarter despite the incorporation of newer features such as Bluetooth, Wi-Fi and GPS in new PDAs. IDC noted that many of these same features can be found on mobile phones, which offer the added benefit of telephony.

Noted analyst Ramon Llamas, "After nine consecutive quarters of year-over-year decline, many are wondering how long this trend will continue, and whether the market will see a reverse. IDC believes that the market will eventually hit a size where the rate of year-over-year decline will slow to a sustainable level. That size has yet to be determined, but will be sustained by the core users of handheld devices as well as the enhancements found on these devices."

Palm’s shipment volumes for the first quarter fell 23.3 percent, Hewlett Packard’s fell by 30.3 percent and Dell’s shipments fell 33.8 percent, said IDC.

Top 5 Vendors, Worldwide Handheld Device Shipments and Market Share, 1Q 2006 (Preliminary)


Vendor

Q1 2006 Shipments

Q1 2006 Market Share

Q1 2005 Shipments

Q1 2005 Market Share

1Q06/1Q05
Growth

Palm

475,000

32.2%

619,253

32.6%

-23.3%

HP

346,000

23.5%

496,755

26.2%

-30.3%

Dell

143,100

9.7%

216,229

11.4%

-33.8%

Acer

110,688

.5%

124,084

6.5%

-10.8%

Mio

104,609

7.1%

56,720

3.0%

84.4%

Others

294,849

20.0%

385,482

0.3%

-23.5%

TOTAL

1,474,246

100.0%

1,898,523

100.0%

-22.3%

Source: IDC Worldwide Handheld QView, April 26, 2006

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