FRAMINGHAM, Mass.-New research shows converged wireless overtaking the traditional personal digital assistant market as shipments of smart phones and other wireless devices are predicted to surpass sales of PDAs this year.
“As device aesthetics and functionality improve and end-user prices continue to decline, converged mobile devices are becoming increasingly accessible to the mainstream consumer and are expected to ship in greater numbers than traditional handheld devices for the first time in 2003,” said Kevin Burden, manager of IDC’s Mobile Device research team.
Research firm IDC said the market for smart phones and converged wireless devices will grow to about 13 million units this year on strong sales of Symbian-based devices-overtaking the PDA market. Such devices feature wireless voice functions but take on a range of form factors. The firm said wireless market growth is expected to remain strong throughout 2007 as a growing percentage of mobile phones adopt high-end operating systems. Indeed, the market’s compound annual growth rate will be nearly 86 percent through the forecast period, IDC said.
IDC predicts the worldwide PDA market will continue to decline to 11.3 million units this year, a drop of 8.4 percent from last year. The firm said the market will see limited growth next year, but that it likely will stabilize to about 15 million units per year.
Research firm Gartner Inc. released similar numbers, showing worldwide PDA sales in the second quarter declining 7.3 percent from the same period last year. The firm found Palm OS-based devices comprised 51.4 percent of the market, trumping the 35.9-percent market share commanded by Pocket PC-based devices. However, the firm found shoppers spent more money on Pocket PC-based devices due to their overall higher cost.
Palm Inc. managed to hang on to the top spot in the worldwide PDA market, with 38-percent market share. No. 2 player Hewlett-Packard Co. scored 15.3 percent of the market, followed by Sony Corp. and Dell Computer Corp. Gartner counted Research In Motion Ltd. as a player in the worldwide PDA market, although all of the company’s devices feature wireless technology. RIM captured the No. 5 slot.
As part of its effort to maintain its commanding position, Palm unveiled its new company name-PalmOne Inc. The renaming effort follows Palm’s acquisition of Handspring Inc. and the separation of its hardware and operating system business. PalmOne will operate the Zire, Tungsten and Treo brands, while PalmSource will split off as a separate company and will manage the Palm OS.
“Palm created an entirely new category when it delivered the first successful handheld computers in history,” said Todd Bradley, Palm Solutions Group chief executive officer. “PalmOne builds on the brand promise and popularity of the Palm name, while indicating our intention to continue to be the driving force of innovation.”
