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Traditional PDA Sales Slide, Cellular PDAs Increasing

8/08/2006 03:12:00 PM Eastern

Framingham, Mass. — Worldwide shipments of traditional PDAs continued their downward slide for the tenth consecutive quarter, according to IDC.

Shipments fell 26.3 percent to 1.4 million units in the second quarter compared with a year ago. For the first half of the year, vendors shipped a total of 2.9 million units, down 21.4 percent. IDC considers PDAs to be non-connected handhelds that do not include cellular capability.

IDC analyst Ramon Llamas said, “Looking ahead, we expect additional quarters of decline and a flattening out of shipment activity before a return to growth. In order to do that, vendors must discover more market segments, relevant applications, and improved usability beyond personal information management.” The company said that features such as Bluetooth, Wi-Fi and GPS have helped to slow the rate of decline.

Sales in the PDA category are a bit brighter if models with data0centric cellular capability are included in the mix, such as the Danger Sidekick, said the research firm Gartner, based in Stamford, Conn. This category, which excludes smart phones, that are phone-centric vs. data-centric, was up 12.3 percent over last year in the United States with vendor shipments reaching 1.577 million units, according to Gartner.

Cellular PDAs are a healthy growth segment, he said. Two years ago they represented only a third of the total PDA market. They now represent 52 percent and are growing in share at a rate of 5-9 percent a year, said principal analyst Todd Kort.

Kort does not believe that un-connected, non-cellular PDAs will ever see resurgence.

“The low end PDAs won’t go away completely, but I don’t see them ever making a comeback. I see the market slowly dwindling,” he said.

In U.S. market share for the second quarter, Gartner said Research in Motion (RIM) had a 35.1 percent share, with sales down 3 percent for the quarter compared to last year. Palm had an 18.7 percent market share with sales down 18.1 percent. Newcomer Motorola won a 9.8 percent share of the market followed by Danger at 8.9 percent and Hewlett-Packard at 5.1 percent.

 
Preliminary 2Q06 US PDA Vendor Shipment Estimates (units)
2Q06 2Q06 Market 2Q05 2Q05 Market Y/Y  % 1Q06 1Q06 Market Q/Q  %
Shipments Share  % Shipments Share  % Growth Shipments Share  % Growth
Research in Motion 553,000 35.1 570,000 40.6 -3.0 639,000 43.5 -13.5
Palm 295,000 18.7 360,000 25.6 -18.1 270,000 18.4 9.3
Motorola 155,000 9.8 0 0.0 NA 0 0.0 NA
Danger 140,000 8.9 95,000 6.8 47.4 116,000 7.9 20.7
Hewlett-Packard 80,000 5.1 104,000 7.4 -23.1 99,000 6.7 -19.2
Others 354,534 22.5 275,718 19.6 28.6 346,267 23.6 2.4
TOTAL 1,577,534 100.0 1,404,718 100.0 12.3 1,470,267 100.0 7.3
Totals do not include smartphones such as Treo 700w and BlackBerry 71xx, but include cellular PDAs such as iPAQ 69xx, Nokia E61
Source: Gartner Dataquest (July 2006)

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