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SAN JOSE, Calif., August 5, 2002 - The worldwide PDA market experienced a slight increase in revenue, as PDA shipments experienced a single-digit decline in the second quarter of 2002, according to preliminary results from Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
Worldwide PDA end-user revenue in the second quarter of 2002 totaled $902 million, a 1.5 percent increase from the second quarter of 2001 when end-user revenue totaled $889 million (see Table 1). PDA shipments reached 2.7 million units, a 3.5 percent decline from the second quarter of last year when shipments reached 2.8 million units (see Table 2).
The combination of Hewlett-Packard and Compaq was barely enough to surpass Palm for the No. 1 position in PDA market revenue in the second quarter of 2002. "Palm and HP did not ship in volume any new models during the quarter. The decline in Jornada and iPAQ shipments from a year ago is largely a result of economic conditions, relatively high prices and lack of diversity across their product line. Customer anticipation of new Pocket PC models based on Intel's XScale microarchitecture also delayed some sales," said Todd Kort, principal analyst for Gartner Dataquest. "Likewise, the release of Palm's OS 5 in early June is putting a damper on sales in this category until new PDAs using this software and new ARM-based processors are ready in a few months." Table 1 Worldwide PDA Vendor End-User Revenue Estimates for 2Q02 (Millions of Dollars)
Note: Does not include smartphones such as Kyocera 6035, Samsung I-300, and Handspring Treo 180. Source: Gartner Dataquest (August 2002) Palm continued to lead the industry in terms of unit shipments, as it shipped nearly double the volume of HP in the second quarter of 2002. Palm accounted for 30.3 percent of all units shipped, while HP had 16.0 percent of worldwide shipments in the quarter. Both vendors shipped substantially fewer units compared to the same quarter a year ago. Table 2 Worldwide PDA Vendor Unit Shipment Estimates for 2Q02 (Units)
Note: Does not include smartphones such as Kyocera 6035, Samsung I-300, and Handspring Treo 180.
Source: Gartner Dataquest (August 2002) In the U.S. market, Palm captured more than 40 percent market share, with Sony, HP and Handspring close together but well behind Palm (see Table 3). Sony introduced six new models so far this year and as of late July it has all the major price points covered. "Sony made a big splash with the Clie NR70V, which integrates a tiny digital camera," Kort said. "Toshiba is benefiting from the excellent price/performance and slim form factor of its e310, and the new e740 is also off to a strong start. Toshiba made significant progress by greatly expanding its reseller base. Handspring continues its gradual withdrawal from the PDA market, focusing instead on smartphones, but IT leveraged the small Treo form factor with the new Treo 90." Table 3 U.S. PDA Unit Shipment Estimates for 2Q02 (Units)
Note: Does not include smartphones such as Kyocera 6035, Samsung I-300, and Handspring Treo 180. Source: Gartner Dataquest (August 2002) PDA OS shares were largely unchanged from a year ago. Palm OS PDAs captured 50 percent of the worldwide PDA market in the second quarter of 2002, with approximately 1.35 million units shipped. Vendors of Microsoft Windows CE PDAs held nearly 28 percent of the worldwide market, up 2.6 share points from a year ago. Proprietary OS devices, especially popular in Asian markets, were steady at about 20 percent of the worldwide PDA industry. Geographically, the U.S. market accounted for 48 percent of worldwide PDA shipments in the second quarter of 2002. The Asia/Pacific region was second with approximately 20 percent of the market, followed by Western Europe, which had 18 percent of PDA shipments in the quarter. "The June through mid-August period is traditionally the slowest season of the year for PDA sales. With Palm OS 5 on the horizon, this summer is likely to be especially slow," Kort said. "Vendors need to examine their cost structures and become more aggressive on pricing. We believe that there is a large amount of pent-up consumer demand that can be unleashed in the last few months of 2002 with more competitive pricing and especially if the economic outlook improves." "The enterprise market is likely to remain relatively stagnant until new budget cycles are in place and more compelling value propositions are available. It's difficult for many enterprises to justify high-end PDAs when more robust notebook computers cost only a few hundred dollars more." This information is produced by Gartner Dataquest's Computing Platforms research cluster. This program is designed to help companies focus on opportunity, with coverage of the complete range of computer hardware platforms as well as associated supply chain components, systems, distribution channels and end-user groups. For more information on how to subscribe to this program, please call 408-468-8000. Reports can be accessed on the Internet at www.gartner.com. Gartner Dataquest is the leader in providing the high technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients understand technology and drive business growth. Gartner's businesses consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. Fiscal 2001 revenue totaled $963 million. For more information, visit www.gartner.com. |
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Contact: Tom McCall +1 408 468 8312 tom.mccall@gartner.com |
