Gartner Says Worldwide PDA Shipments Increased 32 Percent in the Second Quarter of 2005

STAMFORD, Conn.--(BUSINESS WIRE)--Aug. 2, 2005--Worldwide PDA shipments totaled 3.6 million units in the second quarter of 2005, a 32 percent increase from the same period last year, according to Gartner, Inc. The market is on pace to reach 15 million units shipped by the end of 2005, surpassing the record 13.2 million shipped in 2001.

"The steady growth in the PDA market can be attributed to a combination of factors," said Todd Kort, principal analyst in Gartner's Computing Platforms Worldwide group. "Wireless PDAs are increasingly seen as an adjunct or alternative to notebook computers, while favorable exchange rates have enabled more Europeans to purchase PDAs at an attractive price. These factors have aided in the recovery of the slumping PDA market of 2002-2004."

“PDA Market Continues Rapid Growth, Up 32% in 2Q05.”

Research in Motion's BlackBerry shipments grew 64.7 percent in the second quarter, as the company was the No. 1 ranked vendor in worldwide PDA shipments (see Table 1). Dell and HP's market share continued to suffer, however, refreshes to their aging product lines are expected in the second half of 2005. Strong growth in shipments of T-Mobile's Sidekick II and Pocket PC Phone Edition devices pushed Dell out of the top 5 ranking.

Table 1
Worldwide: Preliminary PDA Vendor Shipment Estimates, 2Q05 (Units)
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                                2Q05                2Q04
                         2Q05  Market        2Q04  Market   2Q05-2Q04
Company             Shipments  Share(%) Shipments  Share(%)  Growth(%)
----------------------------------------------------------------------
Research In Motion    840,000    23.2     510,000    18.6      64.7
Palm                  642,020    17.8     913,202    33.2     -29.7
Hewlett-Packard       450,513    12.5     529,773    19.3     -15.0
Nokia                 275,000     7.6           -     0.0       N/A
T-Mobile              212,800     5.9      26,500     1.0     703.0
Others              1,195,275    33.1     769,325    28.0      55.4
Total               3,615,608   100.0   2,748,800   100.0      31.5
----------------------------------------------------------------------
Notes: Totals do not include smartphones, such as the Treo 650 and
BlackBerry 7100, but include wireless PDAs, such as the iPAQ 6315 and
Nokia 9300. Columns may not add to totals shown because of rounding.

N/A = Not applicable

Source: Gartner Dataquest (July 2005)

Microsoft maintained its position as the leading PDA operating system (OS) supplier, as it accounted for 46 percent of worldwide shipments in the second quarter of 2005 (see Table 2). In the battle for the second position, RIM extended its lead over Palm OS with 23.2 percent of the market. Palm OS PDA shipments declined 40.9 percent from a year ago.

Table 2
Worldwide: Preliminary PDA Vendor Shipment Estimates by Operating
System, 2Q05
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                                2Q05                2Q04
                         2Q05  Market        2Q04  Market   2Q05-2Q04
Company             Shipments  Share(%) Shipments  Share(%)  Growth(%)
----------------------------------------------------------------------
Windows CE          1,653,638    45.7   1,006,923    36.6      64.2
Research In Motion    840,000    23.2     510,000    18.6      64.7
Palm OS               678,570    18.8   1,147,667    41.8     -40.9
Symbian               275,000     7.6           -     0.0       N/A
Linux                  28,000     0.8      27,500     1.0       1.8
Others                140,000     3.9      56,710     2.1     147.6
Total               3,615,608   100.0   2,748,800   100.0      31.5
----------------------------------------------------------------------
Notes: Totals do not include smartphones, such as the Treo 650 and
BlackBerry 7100, but include wireless PDAs, such as the iPAQ 6315 and
Nokia 9300.

Columns may not add to totals shown because of rounding.

Source: Gartner Dataquest (July 2005)

The Western European PDA market grew 94 percent to 1.3 million units in the second quarter of 2005. Western Europe accounted for 37 percent of worldwide shipments, up from 25 percent a year ago. PDA shipments in the United States totaled 1.4 million units, a 1.3 percent increase. The stagnant U.S. market is the result of the continuing decline in Palm OS PDA shipments, and aging product lines among Microsoft licensees. PDA shipments in Asia/Pacific grew 24.7 percent with approximately 402,000 unit shipments.

Gartner defines a PDA as a data-centric handheld computer weighing less than one pound that is primarily designed for use with both hands. These devices use an open market operating system supported by third-party applications that can be added into the device by end users. They offer instant on/off capability and synchronization of files with a PC. A PDA may offer WAN support for voice, but these are data-first, voice-second devices.

Additional information is available in the Gartner report "PDA Market Continues Rapid Growth, Up 32% in 2Q05." The report is available on Gartner's Web site at www.gartner.com/DisplayDocument?ref=g_search&id=483992.

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