Worldwide Handheld Device Shipments Down 6% Year-Over-Year in Q3 2002, IDC Says

FRAMINGHAM, MA – NOVEMBER 12, 2002 – Worldwide handheld device shipments declined 6% from 2.59 million units in Q3 2001 to 2.44 million units in Q3 2002 according to IDC's Worldwide Handheld QView. The overall worldwide handheld device market also continued its sequential decline, contracting in the third quarter for the third straight quarter.

 

"The demand for handheld devices remained soft during the third quarter due to weak economies in most regions," says Weili Su, senior analyst in IDC's Smart Handheld Devices service. "For the upcoming holiday season, we expect worldwide market growth to remain flat or slightly down from a year-on-year perspective."

Palm continued to lead the market with 33.8% of the worldwide handheld device market in the third quarter, up from 29.1% a year ago. Palm has proven its resilience in the market despite the recent turmoil that has plagued the vendor. Sony demonstrated its uncanny prowess in growing its shipments in a declining climate and surpassed HP in the third quarter to become the number- two handheld device vendor worldwide.

HP was unable to continue the combined HP/Compaq momentum from last quarter. HP's grip on the worldwide handheld device market slipped from 16.5% in Q2 to 11.9% in Q3. Toshiba was another surprising force, advancing itself to the number-four spot worldwide, ahead of Handspring (United States) and Hi Tech Wealth (China), which have appeared in the top-five chart regularly. Handspring experienced an expected decline in its handheld device business as it increased its focus on its converged device business. Handspring's market share fell from 14.1% a year ago to 3.9% in the third quarter, retreating to eighth place in the worldwide handheld device market.

On a sequential basis, the overall handheld device market declined 7.1% from Q2 2002 to Q3 2002. Sony, Toshiba, and Research-In-Motion were the only

vendors that increased their sequential worldwide shipments in the third quarter.

Top 5 Vendors, Worldwide Handheld Device Shipment, Third Quarter 2002

(Preliminary)

(Shipments are in Thousands)

Q3 2002 Market Q3 2001 Market Shipment Growth

Vendor Shipment Share Shipment Share 2002/2001

Palm 824.00 33.8% 753.00 29.1% 9.4%

Sony 350.00 14.4% 93.00 3.6% 276.3%

Hewlett-Packard 290.00 11.9% 320.00 12.4% -9.4%

Toshiba 103.70 4.3% NA NA NA

Casio 100.00 4.1% 185.20 7.1% -46.0%

Others 768.67 31.5% 1,239.80 47.8% -38.0%

All Vendors 2,436.37 100.0% 2,591.00 100.0% -6.0%

Source: IDC

NOTE:

Shipments include shipments to distribution channels or direct to end-users. OEM sales are counted under the vendor/brand under which they are sold.

Data for Hewlett-Packard includes shipments for both Hewlett-Packard and Compaq-branded products.

Handheld devices include pen-based and keypad-based handheld devices.

Data for all vendors are reported for calendar periods.

IDC's Worldwide Handheld QView is a quantitative tool for analyzing the global handheld device market on a quarterly basis. The QView includes quarterly worldwide and U.S. shipments segmented by vendor, form factor, operating system, and price band.

For more information, please contact Weili Su at 508-935-4460 or wsu@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

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