Worldwide Smart Handheld Device Shipments Declined 12.1% in 1Q02, IDC Says

FRAMINGHAM, MA – APRIL 22, 2002 – The worldwide handheld device market remained slightly depressed in the first quarter of 2002, due in part to both seasonality and continued stagnant demand. Shipments declined by 12.1% year-on-year in the first quarter, and dropped sequentially by 25.4% to 3.25 million.

 

"Weak macroeconomic indicators still persist in the handheld device market, but vendors are working diligently to stimulate growth and formulate solid enterprise strategies, as the enterprise segment remains the key to future growth of the market," said Weili Su, a senior analyst for IDC's Smart Handheld Devices research service. "While we don't expect a rapid turnaround, the seeds of recovery are being sown. Depending on regional economic environments, worldwide handheld device shipment growth may pick up more rapidly toward the end of the year as vendors debut new wireless-enabled product offerings."

Vendor Highlights:

Palm – Worldwide unit shipments declined 23.5% year-on-year during the first quarter of 2002, and declined 22.3% sequentially. Still in the lead, Palm claimed a 39.0% share in the worldwide handheld device market, up 1.6% from the fourth quarter of 2001. In the United States, Palm captured a 47.5% share, down 0.6% from 4Q01.

Compaq – For the first time, worldwide unit shipments surpassed Handspring's. Compaq rose to the number-two position, behind Palm, in the first quarter of 2002. Making strong inroads in the European market, Compaq's worldwide shipment volume grew 18% year-on-year. Compaq ended the first quarter with 10.1% share of the worldwide handheld device market, and 8.6% in the United States.

Handspring – Worldwide unit shipments fell sharply, declining 44% year-on-year, and 24.2% sequentially. Handspring's worldwide share decreased from 15.5% in the first quarter of 2001 to 9.9% this quarter. Handspring captured 14.6% share of the U.S. handheld device market, down 2.3% from the fourth quarter of 2001.

Other highlights:

Sony's worldwide unit shipments grew 257.1% year-on-year. In the number-four spot with a 7.7% worldwide share, Sony is proving its ingenuity by flexing its marketing muscle and becoming a major Palm OS platform OEM.

Hewlett-Packard, another Pocket PC brethren, saw its worldwide unit shipments decline 43.9% sequentially. This decline is not surprising given the anticipation of the HP-Compaq merger. Many speculate that Compaq's iPaq line may become the merged company's handheld device offering moving forward.

Table 1

Top 10 Vendors, Worldwide Handheld Device Shipments, 1Q 2002 (Preliminary)

(Thousands of Units)

Rank Vendor Q1 2002 Shipment (000) Q1 2002 Unit Share

1 Palm 1,267.00 39.0%

2 Compaq 329.00 10.1%

3 Handspring 322.00 9.9%

4 Sony 250.00 7.7%

5 Sharp 145.72 4.5%

6 Hewlett-Packard 144.00 4.4%

7 Casio 143.17 4.4%

8 Hi-Tech Wealth 124.36 3.8%

9 RIM 96.40 3.0%

10 Minren 68.20 2.1%

Other 360.15 11.1%

Total 3,250.00 100.0%

Table 2

Top 10 Vendors, U.S. Handheld Device Shipments, First Quarter 2002 (Preliminary)

(Thousands of Units)

Rank Vendor Q1 2002 Shipment (000) Q1 2002 Unit Share

1 Palm 810.88 47.5%

2 Handspring 249.00 14.6%

3 Sony 185.00 10.8%

4 Compaq 146.25 8.6%

5 RIM 85.00 5.0%

6 Hewlett-Packard 66.83 3.9%

7 Casio 65.00 3.8%

8 Motorola 25.00 1.5%

9 Toshiba 18.00 1.1%

10 NEC 7.23 0.4%

Other 47.37 2.8%

Total 1,705.55 100.0%

Source: IDC, April 2002

Notes: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

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