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Soft Quarter but Strong Year for Smart Handheld Device Market Predicts IDC

  • 21 December, 2005 11:06

<p>NORTH SYDNEY, December 21st, 2005 - IDC has recently released the final results for the Australian smart handheld device market. Findings reveal that the market performed according to seasonal trends, with total shipments in the third quarter of 2005 declining 13% from the previous quarter. Pen-based devices posted a sharp decline of 36% when compared to the preceding quarter. Converged devices accounted for a greater share of total shipments, now making up 92% share of the total market, despite shipments declining 11% sequentially from Q2 2005.</p>
<p>In addition, IDC has found the following key highlights of the 3Q 2005 smart handheld device market:</p>
<p>1) 3Q was a transitional period for many vendors: The Australia pen-based market continued its downward spiral as key vendors, HP and Palm prepared for 4Q and were in the midst of product transition. This was mirrored in the converged device space with new devices from vendors such as O2, Nokia and Carrier Devices expected to hit the Australian market in 4Q. Most vendors cleared existing stock in the channel and waited for new devices to arrive.</p>
<p>2) GPS starts to gain acceptance: In the third quarter of 2005, GPS devices accounted for 16% of all pen-based devices, representing a 92% sequential increase from the previous quarter, in terms of shipment. In the near future, GPS will help to slow the decline of the pen-based devices market, as GPS in-car navigation starts to gain momentum. However, this is not expected to last as more vendors continue to offer GPS enabled converged devices. In Q3 2005, HP was the sole vendor offering such a device.</p>
<p>3) Think Consumer, Think Multimedia: The smart handheld device market has evolved to become one that has deviated from its traditional path, with both pen-based and converged devices shifting its focus away from PIM (personal information management) functionality to include more multimedia functionality. However, traditional data-centric converged devices will continue to do well in the corporate segment.</p>
<p>Mercie Clement, Market Analyst, PC Hardware, noted that, "In terms of vendor rankings for the total smart handheld device market, Nokia continued to be the dominant player accounting for 64.2% share of total shipments in the quarter, resulting from its continued focus on the Series 60 voice-centric range of devices. Research in Motion (RIM) finished the quarter in second place, having launched three new models. O2 beat HP to finish the quarter in third spot, shipping only 74 units more than the latter. HP gained the fourth spot with 5.5% share, faring reasonably well on account of attractive bundling programs as well as price drops throughout the quarter. Rounding out the Top 7 was Carrier Devices, Palm and Motorola."</p>
<p>Top seven vendors (total smart handheld device market):</p>
<p>- Nokia 64.2%
- RIM 9.0%
- O2 5.5%
- HP 5.5%
- Carrier Devices 4.5%
- Palm 3.1%
- Motorola 3.0%
- Others 5.2%</p>
<p>For press enquiries please contact:
Mercie Clement
Market Analyst, PC Hardware
Phone: 61 2 9925 2258</p>
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