PDA Sales Continue Decline - Twice

PDA Sales Continue Decline

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Framingham, Mass. — The worldwide market for handheld devices experienced its sixth consecutive quarter in decline over the same period the year before, according to the research firm International Data Corp., based here.

Device shipments for the second quarter fell 20.8 percent to 1.7 million units, compared to the same quarter last year. Sequentially, sales fell 24.9 percent compared to last quarter.

IDC noted, however, that handheld device makers to continue to innovate with new GPS solutions and with new products, such as the LifeDrive that pushes the boundaries between PDA and personal media player.

“As an answer to slowing consumer demand and stiff competition from converged mobile devices, handheld device manufacturers are striving to creating new solutions,” said Kevin Burden, research manager of IDC's Mobile Devices program. “Discovering and developing these new solutions are essential for returning the market to growth.”

IDC found that Palm shipments declined 30.9 percent year-over-year and HP shipments declined 39.3 percent. Acer shipments, however, skyrocketed 608.2 percent due to demand for its new n35 handheld with integrated GPS receiver that is sold mainly overseas. Dell also posted a strong 17.1 percent gain due to its “ability to dynamically adjust to demand, modify prices and create product bundles,” said an IDC release. Yet another overseas company, Yakumo, saw gains of 346.2 percent due to its devices with integrated GPS.


Top 5 Vendors, Worldwide Handheld Device Shipments and Market Share, 2Q 2005 (Preliminary)


Rank


Vendor


2Q 2005 Shipments


2Q 2005 Market Share


2Q 2004 Shipments


2Q 2004 Market Share


1


Palm


638,376


36.5%


924,364


41.8%


2


HP


321,928


18.4%


530,239


24.0%


3


Acer


199,921


11.4%


28,228


1.3%


4


Dell


179,200


10.2%


153,000


6.9%


5


Yakumo


58,000


3.3%


13,000


0.6%


Other


352,448


20.1%


561,029


25.4%


Total


1,749,873


100.0%


2,209,860


100.0%

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