PDA Sales Slump In 2002
PDA sales slump in 2002 on slack corporate demand
NEW YORK (Reuters) ? Handheld computer shipments slumped in 2002, as an expected boom in demand from corporations failed to materialize, according to an industry study released on Monday. Worldwide shipments of personal digital assistants, or PDAs, the pocket-sized digital companions that can store thousands of appointments, contacts and notes, fell 9.1% to 12.1 million units in 2002, according to Dataquest, a unit of research firm Gartner.
"The more lucrative enterprise market has been stagnant because of poor economic conditions and a perception that PDAs are not yet capable of delivering sufficient return on investment," said Todd Kort, principal analyst for Gartner Dataquest's Computing Platforms Worldwide group.
He estimates that about 70% of all PDAs are purchased by consumers and only 30% by enterprises.
More than 20 million PDAs have been sold in just over five years, sparked by early enthusiasm over the gadgets. But consumers, lacking compelling reasons to upgrade, have not hungered for newer models in the same manner.
Manufacturers had pinned hopes on corporations buying the devices in bulk to outfit their staff with a powerful means to take work on the road, and to allow users to communicate with their offices. But the global economic slowdown forced most companies to reassess technology spending plans.
"A lack of significant progress in wireless PDA technologies has resulted in some companies waiting to purchase these devices," said Kort. "The enterprise market is still another year away from embracing PDAs."
Palm, the dominant maker of handheld computers, saw its shipments decline 12.2% worldwide in 2002. Still, the 4.4 million units it shipped last year were double the shipments by its nearest competitor, and more than the combined total of its five closest competitors.
Palm device shipments represented 37% of the overall market, Dataquest said. Palm also continues to lead the market for the software that powers handhelds, with a 56% stake, compared with rival Microsoft's 26%.
Hewlett-Packard, the No. 2 maker of handheld computers, shipped 1.6 million units in 2002, down 27% from the year before.
Sony vaulted to No. 3, on a 351% jump in shipments, to 1.3 million units. Conversely, Handspring, which shifted its focus away from handhelds toward mobile phones, shipped only 698,000 PDAs, down 49%, Dataquest said.
Dell Computer, which stirred the handheld computer market late in the year with the introduction of its first line of PDAs, shipped 54,000, according to the study.
NEW YORK (Reuters) ? Handheld computer shipments slumped in 2002, as an expected boom in demand from corporations failed to materialize, according to an industry study released on Monday. Worldwide shipments of personal digital assistants, or PDAs, the pocket-sized digital companions that can store thousands of appointments, contacts and notes, fell 9.1% to 12.1 million units in 2002, according to Dataquest, a unit of research firm Gartner.
"The more lucrative enterprise market has been stagnant because of poor economic conditions and a perception that PDAs are not yet capable of delivering sufficient return on investment," said Todd Kort, principal analyst for Gartner Dataquest's Computing Platforms Worldwide group.
He estimates that about 70% of all PDAs are purchased by consumers and only 30% by enterprises.
More than 20 million PDAs have been sold in just over five years, sparked by early enthusiasm over the gadgets. But consumers, lacking compelling reasons to upgrade, have not hungered for newer models in the same manner.
Manufacturers had pinned hopes on corporations buying the devices in bulk to outfit their staff with a powerful means to take work on the road, and to allow users to communicate with their offices. But the global economic slowdown forced most companies to reassess technology spending plans.
"A lack of significant progress in wireless PDA technologies has resulted in some companies waiting to purchase these devices," said Kort. "The enterprise market is still another year away from embracing PDAs."
Palm, the dominant maker of handheld computers, saw its shipments decline 12.2% worldwide in 2002. Still, the 4.4 million units it shipped last year were double the shipments by its nearest competitor, and more than the combined total of its five closest competitors.
Palm device shipments represented 37% of the overall market, Dataquest said. Palm also continues to lead the market for the software that powers handhelds, with a 56% stake, compared with rival Microsoft's 26%.
Hewlett-Packard, the No. 2 maker of handheld computers, shipped 1.6 million units in 2002, down 27% from the year before.
Sony vaulted to No. 3, on a 351% jump in shipments, to 1.3 million units. Conversely, Handspring, which shifted its focus away from handhelds toward mobile phones, shipped only 698,000 PDAs, down 49%, Dataquest said.
Dell Computer, which stirred the handheld computer market late in the year with the introduction of its first line of PDAs, shipped 54,000, according to the study.
Comments
Phones with PDA Basics like Addressbooks and light note taking will erode the basic PDA's marketshare. Consolidation of gadgets is always natural evolution. The PDA has no "killer app" for the masses and that is killing it.
(Sorry, I had to. I love my Newton)
<strong>Maybe it is because the PDA doesnt do as much as a laptop that hardly costs more than a PDA?</strong><hr></blockquote>
$100-200 vs. $1,000-$2,000 for a laptop? Not sure how you can compare that. Even to an iPod, at $300-500, which is a wonderful pod that plays music, and you can have little alarms on it, but you can't really come close to the functionality or interactivity of a PDA that costs hundreds less..