SAN JOSE, Calif., September 30, 2002 - Despite difficult economic times in most of the region, the Latin American PDA industry grew 13.8 percent in the second quarter of 2002, according to a recent study by Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). Latin American PDA shipments totaled 117,757 units in the second quarter of 2002, up from 103,505 units in the second quarter of 2001.
"Palm's market focus and aggressive regional application development program is instrumental in maintaining its leadership position in Latin America," said Luis Anavitarte, vice president and research director for Gartner Dataquest's Latin America group. "The competitive landscape will be rapidly changing with Dell's entrance to this industry, in addition to Microsoft's PDA operating system accessing the region."
While some vendors experienced a decline in growth, Palm extended its lead in the industry, as it's market share increased to 68.4 percent in the second quarter of 2002 (see Table 1). The top three vendors accounted for 97.9 percent of all PDA shipments in the region.
Table 1
Latin America PDA Vendor Unit Shipment Estimates for 2Q02 (Units)
| Company |
2Q02 Shipments |
2Q02 Market Share (%) |
2Q01 Shipments |
2Q01 Market Share (%) |
Growth (%) |
| Palm |
80,564 |
68.4 |
61,312 |
59.2 |
31.4 |
| Hewlett-Packard |
29,850 |
25.3 |
37,250 |
36.0 |
-19.9 |
| Sony |
4,936 |
4.2 |
0 |
0 |
N/A |
| Others |
2,407 |
2.0 |
4,943 |
4.8 |
-51.3 |
| Total Market |
117,757 |
100.0 |
103,505 |
100.0 |
13.8 |
"Market uncertainty about the outcome of Hewlett-Packard's acquisition of Compaq and its product lines, more than market dynamics themselves, partially explain HP's lower PDA sales in the second quarter of 2002," Anavitarte said. "Price positioning and competition from Palm were also important variables. Things should stabilize for the remainder of the year, particularly with more aggressive vendor marketing in light of new local players, such as Itautec from Brazil and Alaska from Mexico, entering the PDA industry with Pocket PC devices."
Mexico was the leading country in the region with 50 percent of PDA market share in the second quarter of 2002. Brazil was the No. 2 country with 31 percent of the market, followed by Chile with a market share of 3 percent.
Latin American PDA shipments are on pace to grow 14.6 percent in 2002. Gartner Dataquest analysts said sales will increase as users in the region begin to learn the capabilities that are possible using a PDA.
"This is an industry in Latin America needing extensive market education at the corporate and consumer levels," said Anavitarte. "Nevertheless, things are on the right track particularly with the development of vertical market applications. Investing in market education is a tough call for vendors at the present time, but sales will strongly pick up once the markets are fully aware of how a PDA will solve their requirements."
Additional information is available in the report "Latin America PDA Market, 2002 and Beyond." This report provides vendor and end-user recommendations, a five-year country forecast, various PDA industry related statistics, also covering other key issues of the PDA industry such as channels, market education, etc. This study can be purchased from the Gartner web site at
http://www.gartner.com/DisplayDocument?id=370245.
This information is produced by Gartner Dataquest's Latin America group. The group provides research on key aspects of the dynamic PC, server, workstation, printer, PDA and telecom markets in Latin America. The focus is on regional and country issues in the top eight Latin American markets and the Rest of Latin America (ROLA) category, where Central American and Caribbean countries are grouped. For more information on this research group, please call 408-468-8000.
Additional information on the Latin America IT market will be presented during Gartner Symposium/ITxpo 2002, October 6-11 in Orlando, Florida. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. For more information, please visit www.gartner.com/symposium. Members of the media can register by contacting Maria DiMasi at 212-699-2734, or by e-mail at gartnerevents@eurorscg.com.
Gartner Dataquest is the recognized 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 global information technology industry.
About Gartner
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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