FRAMINGHAM, Mass., October 27, 2004 The worldwide market for
handheld devices experienced its third successive quarter of
year-over-year decline in the third quarter of 2004. Despite strong
shipments from top five vendors Hewlett-Packard and Dell, the
market continued to shrink due to a drop in shipments from market
leader palmOne and the ongoing withdrawal of former number 3 vendor
Sony. According to IDCs Worldwide Handheld QView, device shipments
decreased 4.6% sequentially and 8.7% year over year in 3Q04 to 2.1
million units.
Consolidation in the worldwide handheld device market continues
with the exit of top vendors Sony and Toshiba from international
competition nearly complete. Meanwhile, lower barriers to entry are
enabling companies with established core competencies in
electronics design and manufacturing to enter the market and
quickly gain share, although this share comes at the expense of
margins in the face of a flat or slightly shrinking market. As a
result, success in the handheld market is increasingly equated with
the ability to develop
solutions that extend the handheld device
into markets beyond core personal information management (PIM)
functionality.
Laptop Battery "In the face of intense competition from converged mobile
devices capable of performing basic personal information management
tasks, the worldwide handheld device market continues to struggle
to evolve beyond its primary role as a PIM device," said David
Linsalata, analyst in IDC's Mobile Devices program. "It is crucial
that vendors push handheld devices into new market segments through
the integration of existing technology such as GPS bundles in order
to energize this market and return it to a growth path.
"We are very pleased to enter the public markets with a strong third quarter, " said Jordan Greenhall, founder of DivX, Inc. "DivX continues to change the way that people experience media. Our success is shown by our expansion into new devices, partnerships and geographies, while our existing partners continue to grow their use of DivX technology. With more than 180 million downloads and over 50 million DivX Certified devices shipped worldwide, we believe that we are at the forefront of an exciting market opportunity."
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Microsoft * palmOne Market leader palmOne experienced a decline in
shipments of 12.7% year over year and 20.3% sequentially, bringing
the company's share down 6.9% points to 34.7%. The company expects
stronger handheld growth in the next quarter, given palmOne's
typically strong sales during the holiday season.
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Laptop Computers * Hewlett-Packard Thanks to a refreshed lineup across both its
business and consumer portfolio, HP's shipments increased 11.7%
year over year and 22.4% sequentially. This boost brought HP to
within 5 percentage points of market leader palmOne, an increase of
6.7% from the second quarter.
Also in the third quarter, ScanSoft continued to experience solid demand for its speech solutions, leading to market share gains in geographic and vertical markets.
Laptop Computer * Dell Continued sales of the x30 helped Dell to increase 44%
year over year and 29.7% sequentially, bringing Dell's market share
up 2.3% to 8.9% of the worldwide handheld device market. With the
recent release of the x50 and the company's strong direct-sales
model, Dell looks well positioned for the fourth quarter of
2004.
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Desktop Computer * MiTAC Similar to Medion before it, MiTAC has entered the top 5
after a relatively short time in the handheld device market thanks
to a focus on quality low-cost handheld devices. MiTAC increased
its shipments 1007.9% year over year and 210% sequentially, giving
the company a 3.2% market share.
Notebooks * Sony As was to be expected from the company's decision earlier
in the year to withdraw from all markets except for Japan, Sony's
shipments declined 81.5% year over year and 74.8% sequentially.
This decrease brought Sony's market share down 5.8% to 2.1%.
Lenovo
Top 5 Vendors, Worldwide Handheld Device Shipments and Market
Share, 3Q 2004 (Preliminary)
| Rank |
Vendor |
3Q 2004 Shipments |
3Q 2004 Market Share |
| 1 |
palmOne |
736,481 |
34.7% |
| 2 |
Hewlett-Packard |
648,975 |
30.6% |
| 3 |
Dell |
188,200 |
8.9% |
| 4 |
MiTAC |
68,500 |
3.2% |
| 5 |
Sony |
44,192 |
2.1% |
|
Other |
436,644 |
20.6% |
|
Total |
2,122,992 |
100.0% |
Hard Drive Source: IDC, October 27, 2004
Travelstar Notes:
Gateway * 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 that enable Internet access and text
communication. These devices feature evolved operating systems or
application environments, such as 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.
Laptop Parts 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.
Software For more information about IDCs Worldwide Handheld Qview
program, please contact Patrick Gorman at 508-935-4369 or
pgorman@idc.com.
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