.KEYWORD gartner
.FLYINGHEAD MARKET ANALYSIS
.TITLE Analysis: handheld market share
.OTHER
.SUMMARY On October 28, 2002, Gartner Dataquest released third quarter 2002 market share results for the PDA sector, revealing that PDA shipments for the first three quarters of 2002 are down 8.3 percent from the same period last year. Meanwhile, Palm retained only 30 percent market share in the third quarter, down from 70 percent a year or so ago. For the complete results of this report, read on.
.AUTHOR Gartner Dataquest staff
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.H1 About this analysis
On October 28, 2002, the market research firm, Gartner Dataquest, released third quarter 2002 market share results for the PDA sector, broken down by shipments per vendor. We found this very interesting. PDA shipments for the first three quarters of 2002 are down 8.3 percent from the same period last year. Meanwhile, Palm retained only 30 percent market share in the third quarter (this is an interesting statistic, since they had nearly 70 percent a year or so ago). For the first time, Microsoft licensees captured more than 30 percent of worldwide PDA shipments, up from 16.2 percent in the third quarter of 2001.
It seems the Pocket PC is rapidly gaining strength at the major expense of Palm. With devices like the ViewSonic, which is a color Pocket PC for under $300, and Dell’s upcoming Axim reportedly being priced at $199, the Pocket PC is finally becoming agressively affordable to the average consumer. Palm’s going to have a serious run for its money. For the complete results of this report, read on.
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Worldwide PDA shipments totaled 2.6 million units in the third quarter of 2002, a 0.9 percent decline from the same period last year, according to preliminary results by Dataquest Inc., a unit of Gartner, Inc.
Shipments for the first three quarters of 2002 are down 8.3 percent from the same period last year. Gartner Dataquest analysts said the market will need an exceptionally strong shipment of PDAs in the fourth quarter for the industry to maintain worldwide growth in 2002.
Palm, Hewlett-Packard, and Sony accounted for 58 percent of all PDA shipments worldwide in the third quarter of 2002, as shown in Table A.
.BEGIN_TAB_TABLE A Worldwide PDA Vendor Unit Shipment Estimates for 3Q02 (Units)
.TAB_TABLE_HEADER Company 3Q02 Shipments 3Q02 Market Share (%) 3Q01 Shipments 3Q01 Market Share (%) Growth (%)
.TAB_TABLE_ROW Palm 808,805 30.6 754,810 28.8 7.2
.TAB_TABLE_ROW Hewlett-Packard 381,910 14.4 317,890 12.1 20.1
.TAB_TABLE_ROW Sony 344,963 13.0 90,690 3.5 280.0
.TAB_TABLE_ROW Toshiba 144,391 5.5 8,000 0.3 1,705.0
.TAB_TABLE_ROW Handspring 100,100 3.8 353,642 13.5 -71.7
.TAB_TABLE_ROW Others 863,523 32.7 1,093,786 41.8 -21.0
.TAB_TABLE_ROW Total Market 2,643,692 100.0 2,618,818 100.0 0.9
.END_TAB_TABLE
Palm retained 30 percent market share in the third quarter, while Sony and Toshiba showed the strongest growth in the quarter with increases of 280 percent and 1,705 percent, respectively. Toshiba is a relatively new market entrant, which explains the high initial growth rate.
"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 number two vendor, HP. Palm engaged in significant promotional activity in the third quarter to reduce inventories and make room for new models that will be launched in October 2002," said Todd Kort, principal analyst for Gartner Dataquest. "Sony PDA shipments have nearly tripled since the third quarter of 2001, and it is on the heels of HP, contending for the number two position. Sony has been averaging about one new model launched in every month of 2002."
In the U.S. market, Palm had a more commanding lead, with nearly 40 percent of all units shipped in the third quarter of 2002. Sony moved into the number two spot with nearly 19 percent market share, followed by HP at 15 percent (see Table B). Sony’s U.S. shipments are more than four times the level of a year ago.
.BEGIN_TAB_TABLE B U.S. PDA Unit Shipment Estimates for 3Q02 (Units)
.TAB_TABLE_HEADER Company 3Q02 Shipments 3Q02 Market Share (%) 3Q01 Shipments 3Q01 Market Share (%) Growth (%)
.TAB_TABLE_ROW Palm 505,000 39.4 479,000 39.0 5.4
.TAB_TABLE_ROW Sony 240,000 18.7 50,000 4.1 380.0
.TAB_TABLE_ROW Hewlett-Packard 190,000 14.8 150,000 12.2 27.0
.TAB_TABLE_ROW Handspring 80,000 6.2 276,000 22.5 -71.0
.TAB_TABLE_ROW Toshiba 70,180 5.5 NA NA NA
.TAB_TABLE_ROW Others 197,806 15.4 272,753 22.2 -27.5
.TAB_TABLE_ROW Total Market 1,282,986 100.0 1,227,753 100.0 4.5
.END_TAB_TABLE
For the first time, Microsoft licensees captured more than 30 percent of worldwide PDA shipments, up from 16.2 percent in the third quarter of 2001. Palm and Sony, along with Handspring and a few other Palm OS licensees comprised approximately 48.6 percent of worldwide PDA shipments in the third quarter of 2002, the same as the third quarter last year.
"After a slow but steady decline, the Palm OS market share appears to have stabilized, 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. Dell and Toshiba appear ready to lead this battle. The Dell entry signals the beginning of a PDA market shakeout that should push out weaker and financially stressed players."
Additional information is available in the Gartner Dataquest Alert "Worldwide PDA Market Remains in Doldrums." This Alert includes preliminary statistics and analysis on the developments of the worldwide PDA industry in the third quarter of 2002.
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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 http://www.gartner.com.
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.BIO 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. For more information, visit http://www.gartner.com.
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