The PDA bounces back

Posted on 4 Aug 2005 at 11:06

The death of the PDA has been somewhat exaggerated it seems. Despite a slump in demand between 2002 and 2004, sales are once more picking up.

According to the latest figures from research company Gartner, worldwide PDA shipments totalled 3.6 million units in the second quarter of 2005. That translates to a 32 percent increase on the equivalent quarter of 2004. The market for PDAs is not only on course to bounce back, but even surpass the boom year of 2001. Gartner estimates that shipments should reach 15 million units by the end of 2005 overtaking the high water mark of 13.2 million shipped in 2001.

Previously the PDA was considered to be a fading technology as more and more functions, such as calendaring and diary migrate to mobile phones. No one single factor can account for the comeback although the Research in Motion's Blackberry has pointed the way in revitalising the sector with the ability to send and receive email on the move.

Todd Kort, principal analyst in Gartner's Computing Platforms Worldwide group commented 'Wireless PDAs are increasingly seen as an adjunct or alternative to notebook computers, while favourable exchange rates have enabled more Europeans to purchase PDAs at an attractive price.'

As evidence, Gartner reports that market leader RIM's BlackBerry shipments grew a whopping 64.7 per cent in the second quarter. By comparison, former market leaders Palm and HP's market share fell 29.7 per cent and 15 per cent respectively as consumers shun their aging product lines. The seemingly invincible Dell Computer also suffered and was pushed out of the top five rankings by strong showings from Nokia and T-Mobile.

Clearly then, devices that are more smartphone than handheld are buoying figures while the common or garden variety of PIM-centric handhelds are indeed on wane. This is amply demonstrated by Palm, which is beginning to look like a company in terminal decline, as the former undisputed pioneer of PDAs sinks to third place with sales falling by over 40 per cent.

The divergence of these markets echoes last week's report by Canalysis: Smartphone sales lead market.

There is some consolation for companies like Dell and HP that use the Windows operating system. According to Gartner, Windows CE is now the established market leader in PDA operating systems eclipsing both RIM and Palm OS with 45.7 per cent of the market.

The Windows share can only increase as Microsoft uses a familiar tactic of leveraging its strength elsewhere to crack a market. Earlier this year, Microsoft announced that Windows Mobile 5.0 will offer a direct connection to Exchange Server, effectively taking on RIM in its core market.

Author: Steve Malone