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PDA sales hit slump
NEW YORK (Reuters) -- Handheld computer shipments slumped in 2002, as an expected boom in demand from corporations failed to materialize, according to an industry study released on Monday. Worldwide shipments of personal digital assistants, or PDAs, the pocket-sized digital companions that can store thousands of appointments, contacts and notes, fell 9.1 percent to 12.1 million units in 2002, according to Dataquest Inc., a unit of research firm Gartner Inc. "The more lucrative enterprise market has been stagnant because of poor economic conditions and a perception that PDAs are not yet capable of delivering sufficient return on investment," said Todd Kort, principal analyst for Gartner Dataquest's Computing Platforms Worldwide group. Millions soldHe estimates that about 70 percent of all PDAs are purchased by consumers and only 30 percent by enterprises. More than 20 million PDA have been sold in just over 5 years, sparked by early enthusiasm over the gadgets. But consumers, lacking compelling reasons to upgrade, have not hungered for newer models in the same manner. Manufacturers had pinned hopes on corporations buying the devices in bulk to outfit their staff with a powerful means to take work on the road, and to allow users to communicate with their offices. But the global economic slowdown forced most companies to reassess technology spending plans. "A lack of significant progress in wireless PDA technologies has resulted in some companies waiting to purchase these devices," said Kort. "The enterprise market is still another year away from embracing PDAs." Palm leads competitorsPalm Inc., the dominant maker of handheld computers, saw its shipments decline 12.2 percent worldwide in 2002. Still, the 4.4 million units it shipped last year were double the shipments by its nearest competitor, and more than the combined total of its five closest competitors. Palm device shipments represented 37 percent of the overall market, Dataquest said. Palm also continues to lead the market for the software that powers handhelds, with a 56 percent stake, compared with rival Microsoft Corp.'s 26 percent. How others fairedHewlett-Packard Co., the No. 2 maker of handheld computers, shipped 1.6 million units in 2002, down 27 percent from the year before. Sony Corp. vaulted to No. 3, on a 351 percent jump in shipments, to 1.3 million units. Conversely, Handspring Inc., which shifted its focus away from handhelds toward mobile phones, shipped only 698,000 PDAs, down 49 percent, Dataquest said. Dell Computer Corp., which stirred the handheld computer market late in the year with the introduction of its first line of PDAs, shipped 54,000, according to the study. Copyright 2003 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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