Handheld shipments increasing

NEWS

Worldwide handheld shipments inched up 0.9 percent in the third quarter compared with the same period last year, according to a new report from Dataquest. Globally, 2.64 million personal digital assistants (PDAs) shipped in the third quarter, up from 2.62 million in the year-ago quarter. The new information reverses the decline seen in the second quarter. Palm continued to lead the market with 30.6 percent of the global market in the third quarter, up from 28.8 percent a year ago. "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," Dataquest analyst Todd Kort said in a release. HP had 14.4 percent of the market, up from 12.1 percent in the year-ago quarter. Sony rounded out the top three with 13 percent of the market, up from 3.5 percent a year ago. "Sony...is on the heels of HP, contending for the No. 2 position," Kort said. "Sony has been averaging about one new model launched every month of 2002." Overall, the US handheld market grew 4.5 percent in the third quarter from a year ago, with shipments reaching 1.28 million. Sony has actually leapfrogged HP in the US market, where it has 18.7 percent of the market, up from 4.1 percent a year ago. HP captured 14.8 percent of the US market in the third quarter, compared with 12.2 percent in the year-ago period. Palm's lead was stronger in the United States, where it has 39.4 percent of the market compared with 39 percent a year ago. The big loser in the US market was Handspring, which saw its 22.5 percent market share from a year ago drop to 6.2 percent. Handspring, Sony and Palm devices all use the Palm operating system. But handhelds using Microsoft's Pocket PC operating system, including HP's devices, continue to see their presence grow in the market. Microsoft licensees made up more than 30 percent of worldwide shipments this year, according to Dataquest. "After a slow but steady decline, the Palm OS market share appears to have stabilised, but new challenges are on the horizon," Kort said. "Much more competitive pricing from Pocket PC vendors, beginning in the fourth quarter of 2002, will undoubtedly stimulate growth in Pocket PC shipments and allow Palm less breathing room." Kort said that Dell's entry into the market could intensify the battle. Dell plans to launch a PDA in the United States soon.

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