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PDA market declines 22% in Asia-Pacific, 9% in USA
Posted on 6-Jun-2003 13:52 | Tags Filed under: News

Gartner Dataquest predicts a 0.3 percent decline in worldwide PDA shipments in 2003, to 12.02 million units; this is down from their original forecast suggesting growth of 11 percent to 13.36 million units.

Analysts expect some economic recovery in 2004, but increasing competition from inexpensive notebook/tablet PCs, smartphones and enhanced mobile phones will limit PDA growth.

The US$99 Palm Zire and Dell's entry into the market have proved to be successful, but these have not been enough to sustain PDA market growth.

Market leader Palm is selling about half the volume it sold a little more than two years ago, and the former No. 2 vendor, Handspring, has exited the PDA market; the combined HP/Compaq is selling fewer units than the companies sold before the merger; and Sony and Toshiba have recently seen their red-hot PDA sales cool down.

Worldwide PDA end-user revenue is expected to decline 9.4 percent in 2003, to $3.49 billion; PDA revenue growth of 7.5 percent in 2004 should bring the market up to $3.75 billion, slightly below the levels of 2000 and 2001.

The Asia-Pacific personal digital assistant (PDA) market has declined 22 per cent during the first quarter of 2003 over the year-ago period as consumers are awaiting the launch of new Pocket PC and PalmOS PDAs this year.

"The decline was primarily due to sluggish China PDA market. Secular growth rates of the past year will not be repeated as the Asia-Pacific market has adjusted to the more realistic and sustainable growth from this year," Lillian Tay, principal analyst for Garner's Computing Platforms Asia-Pacific group said in a statement.

Other countries also registered yearly decline in unit shipments of PDA as buyers approached new purchases with caution due to uncertainities caused by the Iraq war. However, South Korea and Taiwan buckled the trend driven by demand for wireless PDAs that drove unit shipments higher than last year.

Hewlett Packard was the market leader in segment during the quarter due to good momentum the company has in South Korea.

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