Worldwide handheld device shipments declined 21 percent from previous year in Q1 2003, according to IDC - Market Intelligence - Brief Article

Mobile Internet, The, May, 2003

The worldwide market for handheld devices declined in the first quarter of 2003 due to sluggish demand from businesses and consumers alike. According to IDC's Worldwide Handheld QView, worldwide handheld device shipments fell by 21.3 percent year-on-year in 1Q03 and dropped sequentially by 26.5 percent to 2.45 million units. Palm maintained its top position in the market while Hewlett-Packard regained the number 2 position from Sony. Aside from a surge in consumer purchases around the holidays, clear consumption patterns for handheld devices have yet to emerge among enterprises and consumers. As most enterprise customers do not regard handheld devices as a key component of their IT infrastructure, demand softens quickly as corporate IT budgets are cut. In the consumer market, handhelds are viewed primarily as luxury items. As a result, declines in consumer confidence and disposable income negatively impact consumer demand.

QView Highlights

- Palm - On the strength new devices, including its $99 Zire, Palm maintained its leadership status, shipping nearly double the units of its closest competitor

- Hewlett Packard - H-P regained the number two spot due in large part to sales of its $299 H1910.

- Dell - Dell tripled its volume sequentially and vaulted into the top 5 with the success of its $199 and $299 Axim X5.

- Handspring - Previously a market leader, Handspring continued its strategy shift to converged devices, dropping to the number 7 spot overall with 2.9 percent market share.

- Asia/Pacific - The dynamics of the Asia/Pacific handheld market continue to evolve with Legend, Minren, and Hi-Tech Wealth dropping out of the top 10 list of leading vendors during the quarter, and GSL joining the top 10.