Gartner Dataquest Says Worldwide PDA Shipments Grew 1 Percent in Third Quarter of 2002
SAN JOSE, Calif., October 28, 2002 — Worldwide PDA shipments totaled 2.6 million units in the third quarter of 2002, a 0.9 percent increase from the same period last year, according to preliminary results by Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).

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 (see Table 1). Palm surpassed 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 No. 2 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 No. 2 position. Sony has been averaging about one new model launched every month of 2002."

Table 1
Worldwide PDA Vendor Unit Shipment Estimates for 3Q02 (Units)
Company 3Q02 Shipments 3Q02 Market Share (%) 3Q01 Shipments 3Q01 Market Share (%) Growth (%)
Palm 808,805 30.6 754,810 28.8 7.2
Hewlett-Packard 381,910 14.4 317,890 12.1 20.1
Sony 344,963 13.0 90,690 3.5 280.0
Toshiba 144,391 5.5 8,000 0.3 1,705.0
Handspring 100,100 3.8 353,642 13.5 -71.7
Others 863,523 32.7 1,093,786 41.8 -21.0
Total Market 2,643,692 100.0 2,618,818 100.0 0.9
Note: Does not include smartphones such as Kyocera 6035, Samsung I-300, and Handspring Treo 180.
Source: Gartner Dataquest (October 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 No. 2 spot with nearly 19 percent market share, followed by HP at 15 percent (see Table 2). Sony's U.S. shipments are more than four times the level of a year ago.

Table 2
U.S. PDA Unit Shipment Estimates for 3Q02 (Units)
Company 3Q02 Shipments 3Q02 Market Share (%) 3Q01 Shipments 3Q01 Market Share (%) Growth (%)
Palm 505,000 39.4 479,000 39.0 5.4
Sony 240,000 18.7 50,000 4.1 380.0
Hewlett-Packard 190,000 14.8 150,000 12.2 27.0
Handspring 80,000 6.2 276,000 22.5 -71.0
Toshiba 70,180 5.5 NA NA NA
Others 197,806 15.4 272,753 22.2 -27.5
Total Market 1,282,986 100.0 1,227,753 100.0 4.5
Note: Does not include smartphones such as Kyocera 6035, Samsung I-300, and Handspring Treo 180.
Source: Gartner Dataquest (October 2002)


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.

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 www.gartner.com.

Gartner Dataquest is the leader in providing the high technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry.

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