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        Unconnected handhelds fade away, Dell quits

        Doug | Date: May 17, 2007 | Comments: 1



        Sales of unconnected handheld devices continue to plummet as users show increased interest in converged mobile devices and other consumer electronics devices, according to the latest quarterly report from IDC. Underscoring the dismal market outlook, leading vendor Dell is exiting the market.




        IDC reported that just over 900,000 handheld devices shipped in the first quarter of 2007, down 36.3 percent from the previous quarter, and down 40.6 percent for the quarter year-on-year. This marks the thirteenth consecutive quarter of year-on-year decline, IDC said.

        IDC's definition of "handheld devices" includes units that provide wireless capabilities, such as Internet access and text communication, but excludes "converged devices" with integrated telephony functions. In Windows Mobile 6 terminology, these types of devices are considered "Classic."

        Personal information management, "the key feature that once distinguished handheld devices, can now be found commonly on converged mobile devices," noted Ramon Llamas, research analyst with IDC's Mobile Device Technology and Trends team. "The growing popularity of converged mobile devices combined with declining prices for laptop computers have put tremendous pressure on the handheld device market."

        Vendor rankings

        The top five vendors for the quarter were almost unchanged from the prior quarter, with Sharp taking the number five position away from Acer.

        Top Five Handheld Device Vendors -- Q1 2007 (Preliminary)

        Vendor Q1 2007
        Shipments
        Market Share Q1 2006
        Shipments
        Market Share Y/Y Growth
        Palm 295,250 32.1% 475,000 30.7% -37.8%
        HP 199,400 21.7% 346,000 22.3% -42.4%
        Mio 138,631 15.1% 104,609 6.8% 32.5%
        Dell 78,000 8.5% 143,100 9.2% -25.4%
        Sharp 44,000 4.8% 99,000 6.4% -55.6%
        Others 164,635 17.9% 381,490 24.6% -56.8%
        TOTAL 919,916 100.0% 1,549,199 100.0% -40.6%

        (Source: IDC Worldwide Handheld QView, May 2007)



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