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Oct. 30, 2002

New York -- For the first time, shipments of PocketPC-based handhelds rose in the third quarter of 2002 to slightly more than 30 percent of worldwide shipments, up from 16.2 percent in the third quarter of 2001. However, Palm remained in strong position and also exceeded 30 percent market share.

"Palm is not as dominant as it once was, but it still shipped more than twice as many units in the third quarter as the No. 2 vendor, Hewlett-Packard. Palm engaged in significant promotional activity in the third quarter to reduce inventories and make room for new models that will be launched in October 2002," said Todd Kort, principal analyst for Gartner Dataquest. "Sony [PocketPC] PDA shipments have nearly tripled since the third quarter of 2001, and it is on the heels of HP, contending for the No. 2 position. Sony has been averaging about one new model launched every month of 2002."

Palm, Hewlett-Packard and Sony accounted for 58 percent of all PDA shipments worldwide in the third quarter of 2002. As Palm surpassed the 30 percent market share level in the third quarter, Sony and Toshiba showed the strongest growth in the quarter with increases of 280 percent and 1,705 percent, respectively. Toshiba is a relatively new market entrant, which explains its high initial growth rate.

In the U.S. market, Palm had a more commanding lead, with nearly 40 percent of all units shipped in the third quarter of 2002. Sony moved into the No. 2 spot with nearly 19 percent market share, followed by HP at 15 percent. Sony's U.S. shipments are more than four times the level of a year ago.

Overall, worldwide shipments of PDAs totaled 2.6 million units in the third quarter, up 0.9 percent from the year-ago period. However, total shipments for the first nine months of 2002 are down 8.3 percent from the same period last year.

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