Worldwide Handheld Device Shipments Declined
10.7 % from Previous Year in Q2 2003, According to IDC
22 Jul 2003 FRAMINGHAM, Mass., July 23, 2003 The worldwide
market for handheld devices continued to decline in the second
quarter of 2003 due to seasonality and sluggish demand from businesses
and consumers alike. According to IDCs Worldwide Handheld
QView, worldwide handheld device shipments fell by 10.7% year-on-year
in 2Q03 and dropped sequentially by 10.2% to 2.27 million units.
Palm Solutions Group maintained its top position in the market
while Hewlett-Packard continued to solidify its standing as the
number 2 handheld vendor.
"This quarter illustrates the handheld device markets
struggle to grow beyond its roots. Personal information management
is a killer application for 30 million individuals worldwide,
but handheld devices lack an application that will further expand
their appeal and differentiate them from technologies targeting
similar market segments, said Ross Sealfon, research analyst
in IDCs Smart Handheld Devices program. Combined with
worldwide economic uncertainty and an increasingly crowded market,
handheld device vendors will have a difficult time building and
maintaining market share."
After a surge in shipments around the holidays, the handheld
device market declined in each of the past two quarters. In light
of other IT priorities and scarce funds, enterprises remain hesitant
to invest in handheld device technology. Competition from alternative
form factors and limited overall appeal continues to limit consumer
interest as well. The decline in 2Q03 was not as steep as the
decline experienced in the same quarter one year ago and such
a reality, coupled with a brightening macroeconomic outlook, indicates
that a more favorable environment for handheld device sales may
exist in the second half of the year; such a recovery will also
be aided by vendor upgrades of device capabilities and the further
integration of wireless connectivity without a significant price
Palm Buoyed by the sales of its Zire 71 and Tungsten
C devices, Palm maintained its leadership status and expanded
its worldwide market share to just under 40.0%. Also in 2Q03,
Palm announced that its $99 Zire exceeded the 1 million unit shipment
mark since its launch in October 2002.
Hewlett Packard HP solidified itself as the number
2 handheld vendor on the strength of the $299 H1910. With the
launch of five new devices in June the company is poised to increase
Sony Sony's market share declined from 16.5% in
1Q03 to 11.3% this quarter due to slower than expected sales of
new models unveiled in March. Similar to HP, however, Sony launched
new devices in June and July which the company hopes will re-energize
Dell Dell's worldwide shipments declined slightly
this quarter due to an aging Axim product line and increased major
brand competition. The company's progress in Europe and late quarter
push in Asia, however, helped the company maintain its number
Handspring/Palm In early June, Palm announced that
it will acquire Handspring in the fall. With Handspring's focus
now on converged devices the acquisition will not help Palm in
the handheld market, but will help to grow Palm's presence in
the converged handheld device market.
Top 5 Vendors, Worldwide Handheld Device Shipments and Market
Share, 2Q 2003
||2Q 2003 Shipments
||2Q 2003 Market Share
Vendor shipments are branded shipments and exclude OEM sales
for all vendors.
Handheld devices are pocket-sized, either pen or keypad-centric,
and are capable of synchronizing with desktop or laptop computers.
Handheld devices are designed to access and manage data including
office documents, multimedia, and games.
Handheld devices do not include telephony but may include wireless
capabilities which enable Internet access and text communication.
These devices feature evolved operating systems or application
environments, such as the Palm OS, Pocket PC, Windows CE, Handheld
PC 2000, Linux or proprietary solutions and have the ability to
download and run applications and store user data beyond their
required PIM capabilities.
Source: IDC, July 23, 2003
IDCs Worldwide Handheld Qview provides device vendors,
software developers, service providers, and component suppliers
with timely and accurate information on the worldwide handheld
market. The program provides quarterly measurements of worldwide
unit shipments and vendor market shares.