observes that high-end PDAs are evolving into wireless communicators with the ability to connect to the Internet, and suggests that sales of PDAs without communication capabilities are likely to be flat or decline, despite lower prices.

The report notes that economies of scale favor wireless handsets, with a current installed base of some 1.2 billion units, in contrast to PDAs, which have a mere 31 million unit installed base. Additionally, wireless handsets are starting to gain PDA functionality in order to be useful for communicating data -- another factor diminishing the growth of the traditional PDA market.

More information on this report is available here

---

Related stories:

• Report: Connected PDAs to outnumber traditional PDAs by 2006
  
• Report: Global mobile device market shows "tremendous growth"
  
• Report examines Microsoft's Smartphone OS market position
  
• Gartner: Windows CE ties Palm OS for Q1 '04 market share
  
• Report: "full-featured" handsets to disrupt mobile electronics sector
  
• Less than half will primarily use traditional PCs by 2006
  
• IDC notes 400% year-over-year smartphone market growth
  
• IDC: Worldwide handheld device shipments decline 12% from previous year
  
• Survey says PocketPC surging up behind Palm
  
• Windows Mobile surpasses Palm OS in 2003 European PDA sales
  
• Windows-gadgets to outsell Windows-PCs in 5 years