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Traditional PDA market decline persists
Nov. 09, 2006

Worldwide shipments of non-converged handheld devices (PDAs) shrank to just 1.1 million units in Q3 of 2006, IDC reports. The analyst firm attributes the 15.4 percent drop from the prior quarter -- marking the 11th straight quarter of year-over-year decline -- to a lack of new devices.

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 -- such as Windows Mobile smartphones and Pocket PC Phones.

While the PDA market has languished, however, converged devices are booming.

Ramon Llamas, research analyst for IDC's Mobile Markets team, notes that new PDA models have not been showing up in the market. "Contributing significantly to the decrease in shipments this quarter was a lack of new devices being announced or shipped to the market," he stated. "Vendors continue to rely on models that have been on the market anywhere between two and four quarters. Without many new devices on the market in the third quarter, it brings into question how shipments will total during the fourth quarter when vendors typically expect a boost in shipments as a result of new devices coming to market."

Despite the lack of new devices, however, Llamas notes that some users "remain fiercely loyal to their handheld devices, and smaller niche users have emerged. For example, in some developing markets, the handheld device has been tremendously important in self-education, enabling users to continue learning outside the classroom once they have downloaded content through the PC."

Llamas adds that growth in "specific non-network" tasks such as self-education could be the catalyst for increased shipments and possibly new task-specific devices.

IDC has previously suggested that the inclusion of GPS functions could offer an opportunity for non-phone handhelds to find more traction among consumers.

Vendor rankings

According to IDC, Palm remains the top vendor. During Q3, the company increased its market share to nearly 41 percent, up from 30 percent in the third quarter of last year. Number two HP's share dropped to just under 22 percent, from 25 percent in the corresponding quarter of last year.

Mio, fourth in last quarter's rankings, tied with Dell for third place this quarter, with 9.5 percent each. Sharp rounded out the top five with a 3.6 percent share of the market. Sharp, meanwhile, posted the largest year-over-year gain in shipments, up 207 percent.



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