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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
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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