Handspring Drops to Third Place in Retail Sales

In March of this year, Sony's handhelds outsold Handspring's for the first time in U.S. retail stores, according to NPDTechworld. This had more to do with Handspring losing market share than Sony gaining it, though. In February, Handspring had 18.9% of sales but by March this had dropped to 14.5%. Sony had 16% in February and 15.4% in March, almost a percentage point ahead of Handspring.

Of course, the competition between the two is for second place. Palm Inc.'s share of the retail market had a big jump, moving from 45.7% in February to 54.3% in March. This means the Palm OS platform made up almost 85% of handheld retail sales that month.

Handspring's Visor sales have been weak since the company's CEO Donna Dubinsky said during a conference call with analysts in January that her company would hereafter be concentrating on the Treo line of smartphones, with the Visor line getting less attention.

Sales of Palm's handhelds were unusually slow in February because of all the rumors about the imminent release of the m515 and m130, which came out at the beginning of March.

The list of top five handheld companies in retail sales was rounded out with Compaq in fourth place and H-P in fifth.

These figures only count handhelds purchased in retail stores, not online or direct sales. When mail order and corporate reseller sales are added to retail, the figures are slightly different for March.

Palm was still on top with 55.4% of sales. Handspring was second with 12.4% and Sony had 12.2%. Again, Compaq was in fourth place while H-P was fifth.

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Treo 90 Will Help HandSpring

I.M. Anonymous @ 5/20/2002 10:26:44 AM #
The release of the Treo 90 should stop HandSpring's downward slide. It won't be enough to put them back to 20% of the market but they should stop dropping. A good color handheld less than $300 with a keyboard will sell good with Dads and Grads.
RE: Treo 90 Will Help HandSpring
Foo Fighter @ 5/20/2002 11:46:08 AM #
That is purely speculation. We don't know what impact the Treo 90 will have on the market until it ships. I don't see anything innovative about this product, save for the keyboard. But will another plain vanilla Palm be enough to save Handspring? I certainly don't think so.

RE: Treo 90 Will Help HandSpring
I.M. Anonymous @ 5/20/2002 12:19:45 PM #
Treo 90 with keyboard is a plus but lack of graffiti is a definitely minus too. 12-bit color screen is not that impressive after all and the form factor is not as good as m515 or Clie T615. So I don't think Treo90 will be a hit .
RE: Treo 90 Will Help HandSpring
I.M. Anonymous @ 5/20/2002 1:26:54 PM #
>>"12-bit color screen is not that impressive after all "

I really think people make to much of this. It is almost impossible to tell the difference between a 12bit image (4096 colors) and 16bit (65,000 colors). It is quite a bit easier to tell the difference between 8-bit (256 colors) and 12 bit. 65000 colors sounds a lot more impressive but believe me (i had a casio e125 ppc with 12 bit-screen and an ipaq w/16-bit) the difference isn't noticable. How many Palm OS apps or games (in the history of the platform) actually show more then 4096 colors on the screen at once?

RE: Treo 90 Will Help HandSpring
I.M. Anonymous @ 5/20/2002 2:07:22 PM #
There is not enough information out about Treo 90 that
tell it will be a hit or a bust.

I have to say they are too slow to come out with new
features.

RE: Treo 90 Will Help HandSpring
I.M. Anonymous @ 5/20/2002 2:31:41 PM #
12-bit is a LOT less than 16-bit. Look at a iPAQ 36xx, than a 38xx. There is a major difference in photo viewing, moron.
RE: Treo 90 Will Help HandSpring
I.M. Anonymous @ 5/20/2002 3:24:57 PM #
comparison of 12bit and 16bit images. The images on the left are 16-bit jornada 568, the images on the right are 12-bit ipaq 3650. Yes, the 12-bit produces noticable color banding in the background of the 1st image. Aside from that, the rest of the images are almost identicle in quality:

http://www.pocketnow.com/reviews/jornada568/jornada568b.htm

...certainly, aside from certain photos, you wouldn't be able to tell the difference in say, a color game.
And when you take this to a 2.5 x 2.5 inch Palm screen (with less brightness then yr desktop) all differences become much less noticable.

Let me be the first...

ssummer @ 5/20/2002 9:05:12 AM #
Let me be the first to say that these market trends are generally NOT indicative of the quality of a company or the handhelds they make. Honda Accords sell more than E-Class Mercedes, it doesn't make the Accord the better car or Honda the better company.

I also doubt Handspring's announcement that they would focus on the Treo had any effect on retail sales for them. Retail buyers are generally don't take those kinds of things into consideration when buying PDA. Other than the Treo, Handspring just don't have anything slick, exciting and new in store displays right now.

Standard disclaimer: I own a Clie and like it, Sony makes nice PDAs but is nowhere near perfect and has yet to "RULEz the maRkET!@!!$!", Palm is slow at innovating but they are GAINING market share so they're doing something right, and Handspring, well you reap what you sow.

Handspring's destiny
I.M. Anonymous @ 5/20/2002 10:26:13 AM #
It's so predicable and nothing can save Hanspring anymore. At the time they gave up their Visor line, they just sentence themself to death. It's a fate.
RE: Let me be the first...
ssummer @ 5/20/2002 12:07:48 PM #
Following your logic, Handspring, a relatively small company, who according to you have "sentenced themselves to death" came close to tying retail sales of Sony, a much larger company who by anyone's standards is trying pretty damn hard to corner the PalmOS market.

So in essence, this little company with a half-a**ed attitude is doing almost as well (PDA wise) as a large international conglomerate dedicating it's vast wealth and resources into the effort. That makes Handspring sound pretty impressive to me.

Of course, they may continue their decline but nothing is set in stone my friend. Handspring has PLENTY of time to right themselves...

RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 12:28:13 PM #
PLENTY Of Time??? You do have faith you HS. Why don't you put all the money you have in HS shares? According to you, they will be better to Sony in no time.
RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 12:30:40 PM #
"So in essence, this little company with a half-a**ed attitude is doing almost as well (PDA wise) as a large international conglomerate dedicating it's vast wealth and resources into the effort. That makes Handspring sound pretty impressive to me."

How long has HS been in the market? 5 years.
For that matter, how long has Palm been in the market? 10 years.

Sony? 2 years.

HS had a whole three years to fully distance themselves from Sony, so I guess some of the "half-a**ed" commentary does fit. Now, if they both entered the market at the same time, then your argument could hold some water.

RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 12:48:21 PM #
5 years? I could have sworn that the first Visors didn't start shipping until fall 1999 (and they weren't readily available in retail until early 2000).
RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 1:09:31 PM #
The Pilot 1000 and Pilot 5000 were released in March 1996, about 6 years ago.

The Visor fow released in September 1999, about 2.75 years ago.

The Sony S300 was released in the US in August 2000, so about 1.75 years ago.

The Visor hasn't been around that much longer than the CLIE. Handspring had a huge lead over Sony because the original Visor line was very good, while the original Clies were bloody awful.

Sony only starting showing some legs last year when the 710 came out, its first model worth buying.

RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 2:55:18 PM #
Yes, the S300 was lame, but now that Sony's found its legs, it is catching up quickly. Will Sony "rule the market?" No, but they will be a major play, just as they are in camcorders, CD players, DVD players, stereos, etc.

You folks mistakenly assume that everyone seeks the same market dominance that Microsoft has. That's simply not true. Palm and Sony both seek to be big-time players, but they don't need to monopolize. Handspring, in the meantime, is slowly fading as a "player." Never turned a profit, never will...

RE: Let me be the first...
ssummer @ 5/20/2002 3:18:01 PM #
Just a few replies:

"PLENTY Of Time??? You do have faith you HS. Why don't you put all the money you have in HS shares? According to you, they will be better to Sony in no time."

I can't emphasize enough the importance of reading if you are going to participate in forum discussions. You might recall I stated "they may continue their decline". I really don't understand how you take that to mean that I think they are going to be better than Sony.

"HS had a whole three years to fully distance themselves from Sony ... Now, if they both entered the market at the same time, then your argument could hold some water."

Irregardless of your false calculations, the only number that really matters is that Sony has been in the game for almost two years and they have just caught up. With Sony's resources, it really shouldn't take that long to catch up with a "half-a**ed" company like some people take HS to be.

"You folks mistakenly assume that everyone seeks the same market dominance that Microsoft has."

If any CEO of a publicly-traded company ever stated that "MS style" market dominance was not wanted by their company, shareholders would laugh the fool out of town...

RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 3:53:29 PM #
First off,
"Irregardless" isn't a word.

Next,
"With Sony's resources, it really shouldn't take that long to catch up with a "half-a**ed" company like some people take HS to be."

While this maybe true, please keep in mind that HS was created by the people who created the Palm device. Therefore, if you want to talk about resources, then I'd say that it balances itself out.


RE: Let me be the first...its a pda, not a car
I.M. Anonymous @ 5/20/2002 4:31:35 PM #
mercedes is still a big company that is capable of making better models even if its not the top seller. but in the pda world, you need to sell a whole lot to survive. unless you're sony.
RE: Let me be the first...
I.M. Anonymous @ 5/20/2002 6:57:25 PM #
or Microsoft
RE: Let me be the first...
ssummer @ 5/20/2002 10:31:44 PM #
"While this maybe true, please keep in mind that HS was created by the people who created the Palm device. Therefore, if you want to talk about resources, then I'd say that it balances itself out."

Dude, what are you talking about? Sony's total sales for last year ($60B) was over 20 (twenty) times that of 3Com, Palm Inc. and Handspring COMBINED (under $3B). Yeah, that sounds real balanced.

HS had to hack PalmOS just like everyone else. HS's people lost their "home field advantage" pretty quickly after leaving Palm.

ssummer

P.S. - Focus on the facts: "http://www.bartleby.com/61/84/I0238400.html"

typo

I.M. Anonymous @ 5/20/2002 9:28:29 AM #
"Sales of Palm's handhelds were unusually slow in February because of all the rumors about the **immanent** release of the ..."

Should be "imminent"?

RE: typo
Ed @ 5/20/2002 9:35:38 AM #
Yes, thanks.

---
News Editor
RE: typo
I.M. Anonymous @ 5/20/2002 2:48:14 PM #
Oh great, another one of the alphabet soup crowd heard from.
While I agree that spell-checking is a great thing for any journalist to do, I really think you should get off of this "point out every spelling error" kick, and try to come up with something like some discourse.
RE: typo
I.M. Anonymous @ 5/20/2002 5:53:09 PM #
So, don't point out spelling mistakes. Fine. Then visitors to PIC who happened by the site in a search engine for a story, etc., will take PIC to be less than the great site it is.

Handspring's decline

I.M. Anonymous @ 5/20/2002 11:41:23 AM #
Handspring is going downhill because they're not the same company they used to be. I have owned 3 Visors over the past few years, the latest being a Prism. Last week, it just died on me. Half the screen would not respond to any taps. I did not drop it, bang it or get it wet. It would have cost $125 to repair since it's over a year old. I bought my very first Palm, a m515 to replace it, because Palm supports my operating system (Mac OS X) while Handspring does not. I saw no reason to buy another Handspring. I don't need the communicator features, I want color that I can see indoors and out, I want a lighter unit and flashable ROM. Handspring has nothing to offer me, and if I'm not alone maybe that's part of the reason they're losing sales.
RE: Handspring's decline
Kesh @ 5/20/2002 4:14:19 PM #
>...Palm supports my operating system (Mac OS X) while Handspring does not.

Oh? I've never used a Handspring specific version of Palm Desktop (other than the one from the install CD) to Hotsync my Visors (a Deluxe then a Prism). In fact, it's the same software. The only differences I've seen is that the non-HS version tries to update the OS, which the Visors don't like. If you just drag the OS update out of your folder, it gives an error but syncs just fine. No reason to wait on a HS specific version, which is probably why they don't bother anymore.

RE: Handspring's decline
I.M. Anonymous @ 5/21/2002 2:24:50 AM #
Doesn't Palm have the same one year warranty policy? And dont they charge for out of warranty replacements too?

Sony's Example

I.M. Anonymous @ 5/20/2002 12:14:48 PM #
Sony has demonstrated how an inovative company can make a stand on an allready established market, and do a good job of it.
RE: Sony's Example
I.M. Anonymous @ 5/21/2002 2:25:38 AM #
How is the market already established? PDAs are just catching on in the genral marketplace. IN the past they were being purhcased mostly by business professionals and technophiles.

Where are all the TROLLS????

I.M. Anonymous @ 5/20/2002 3:41:40 PM #
I kinda miss having idiots be the First to reply and say that "SONY RULES" or the "Palm will be dead in six months", etc...I also miss the PPC trolls trying to look at <15% market share through rose colored glasses and making upsurd statements like "PPC is the superior pda OS" and so on..... I just thought I'd mention that I miss these lame losers.

PALM OS DOES RULE and that is an undeniable FACT. Congrats to Palm, Sony and HS for the 85% market share.

RE: Where are all the TROLLS????
I.M. Anonymous @ 5/20/2002 3:55:22 PM #
And you are .. ?? Master of troll ?
RE: Where are all the TROLLS????
I.M. Anonymous @ 5/20/2002 4:12:26 PM #
That would be TROLLMASTER to you my pea-brained, leming.
RE: Where are all the TROLLS????
I.M. Anonymous @ 5/20/2002 4:22:42 PM #
OK , MR.TROLLMASTER , how r u today ?
RE: Where are all the TROLLS????
I.M. Anonymous @ 5/20/2002 4:45:56 PM #
"US retail months of feb and march."

I am sure those are global definition. (but don't tell anybody about next quarter global sale, Palm might now hold up 35%)

Ed, about the Treo

I.M. Anonymous @ 5/20/2002 6:09:05 PM #
In other articles it is stated that the treo is listed as a "smart phone" and not as a handheld. Is that the case here? If so they may not be sinking like everyone here thinks. A certain percentage of Handspring sales are just being counted elsewhere.
RE: Ed, about the Treo
I.M. Anonymous @ 5/20/2002 6:23:18 PM #
Treo 180 sales is pretty small to alter the percentage significantly.
RE: Ed, about the Treo
I.M. Anonymous @ 5/20/2002 7:06:37 PM #
Say Treo is counted as a handheld. If a mere 2 in every hundred handhelds sold in March is a Treo, Sony does NOT overtake handspring at all. Remember this is not numbers on what PDA people have. It is only what was PUCHASED during march.
RE: Ed, about the Treo
I.M. Anonymous @ 5/20/2002 9:03:32 PM #
last number we know from several months back about Treo was 13,000 sold, 47,000 delivered.
RE: Ed, about the Treo
I.M. Anonymous @ 5/21/2002 11:40:13 AM #
>Say Treo is counted as a handheld. If a mere 2 in
>every hundred handhelds sold in March is a Treo, Sony
>does NOT overtake handspring at all.

The problem is that "mere 2 in 100" is too high an estimate. Treo sale was well under 1% of all Palm devices sold in March.

RE: Ed, about the Treo
I.M. Anonymous @ 5/21/2002 1:25:09 PM #
Perhaps you'd like to quote some evidence for this.
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