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Handheld Shipments Drop Another 40%

The worldwide handheld device market posted its fifteenth consecutive quarter of decline in shipments, signaling either vendor intent to scale back production or exit from market entirely, or both. According to IDC's Worldwide Handheld QView report, vendors shipped 728,894 handheld devices in 3Q07, approximately 1.5% more than the previous quarter but 39.3% less from the same quarter a year ago.

"The handheld device market has been under constant pressure, with mobile phones and converged mobile devices appropriating many of the handheld's salient attributes," says Ramon T. Llamas, research analyst with IDC's Mobile Device Technology and Trends team. "Handheld product portfolios have suffered as vendors have reallocated their production resources."

"However, the handheld device market may be down, but is not necessarily out. The handheld still has a loyal, if shrinking, following in developed economies, especially among enterprise users. In emerging markets, the appeal of the handheld devices seems anchored in the fact that, in the absence of a monthly service plan, it has a lower total cost of ownership compared to mobile phones and/or the converged mobile device."

Top Five Handheld Device Vendors

Palm remained the clear leader in the handheld market even though it has not launched a new model for over two years. However, over the same period, the company has released nearly a dozen new Treo converged mobile devices. After having retired the LifeDrive, Palm is relying on its Z22, TX, and Tungsten E2 handheld devices to represent the company.

HP retained the No. 2 position during the quarter, still trailing Palm but far outpacing any of the remaining vendors. In September, HP announced plans for several new devices including two handheld devices - the 111 Classic Handheld and the 211 Enterprise Handheld - as well as the iPAQ 610 Business Navigator, a converged mobile device.

Mio has standardized GPS capability on all of its handheld devices, and by leading with that value proposition, the company has experienced continued growth. Recently Mio announced two new additions to its portfolio, the P360 and the P560. The P560 boasts WiFi as one of its key features.

Fujitsu-Siemens climbed back into the top five rankings after a one quarter hiatus, and stayed far ahead of the remaining vendors to claim the No. 4 spot as its own. Helping to drive volumes were its C Series and N Series devices shipped into EMEA, and recently the company has begun to offer a competing converged mobile device with its Pocket LOOX T Series device.

Sharp narrowly stayed ahead of a crowded group of other vendors to take the number five spot during the quarter, and suffered the largest year-on-year decline in the group. All of its shipments were recorded in Japan, and they accounted for nearly two-thirds of all handheld devices shipped to that country. While Sharp's business has floundered, its success in the mobile phone and converged mobile device segments has propelled it to the No. 1 position in Japan.

Top Five Handheld Device Vendors, Shipments, Market Share, and Year-On-Year Growth, 3Q07

Vendor

3Q07 Shipments

3Q07 Market Share

3Q06 Shipments

3Q06 Market Share

3Q07/3Q06 Growth

Palm

325,000

44.6%

450,000

37.5%

-27.8%

HP

198,100

27.2%

240,000

20.0%

-17.5%

Mio

81,903

11.2%

117,557

9.8%

-30.3%

Fujitsu-Siemens

39,519

5.4%

25,354

2.1%

55.9%

Sharp

17,500

2.4%

101,000

8.4%

-82.7%

Others

66,872

9.2%

267,634

22.3%

-75.0%

Total

728,894

100.0%

1,201,545

100.0%

-39.3%

Source: IDC Worldwide Handheld QView, November 9, 2007

Notes:

  • Vendor shipments are branded shipments and exclude ODM sales for all vendors.
  • Handheld devices are pocket-sized, either pen or keypad-centric, and are capable of synchronizing with desktop or laptop computers. Handheld devices are designed to access and manage data including office documents, multimedia, and games.
  • Handheld devices do not include telephony but may include wireless capabilities (like Bluetooth and WiFi) that enable Internet access and text communication. These devices feature evolved operating systems or applications environments such as the Palm OS, Windows Mobile Pocket PC, Linux, or other proprietary platforms with the ability to download, run applications, and store user data beyond PIM capabilities.

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I can't remember the last time I bought a...

SeldomVisitor @ 11/9/2007 6:59:42 PM # Q
...calculator.

Why should handhelds be any different?

For that matter, I didn't buy my cellphone(s) either (though I locked myself into a 2-year service contract for them, gotta admit).

Reply to this comment

race to zero

Gekko @ 11/9/2007 8:09:36 PM # Q

dinosaurs are extinct too.

Reply to this comment

No crap

sremick @ 11/9/2007 10:37:31 PM # Q
Well they're not making any handhelds someone would want to buy. So no crap sales are falling.

All the people who WOULD buy handhelds are crying out for what they want. If manufacturers aren't going to produce that, then what do they expect?

http://www.vtbsd.net/

RE: No crap
DevPOV @ 11/10/2007 1:01:27 PM # Q
I still use and love my T|3.
Best Palm ever made, without a doubt.
Too bad.
Too sad.
Burma Shave.


RE: No crap
jfme @ 11/11/2007 7:43:55 PM # Q
Just wait a year.

In 2008 the Ipod Touch will be topping that chart and will be the only one with + growth. With 3rd party applications comming...

RE: No crap
mikecane @ 11/13/2007 8:52:20 AM # Q
>>>Burma Shave.

ROTFLMAO!!! Classic!

Reply to this comment

15 quarters = almost 4 years = release of Tungsten T|3

Poopie @ 11/10/2007 12:06:49 AM # Q
Go back *16* quarters and re-read the Palm infocenter review of the Palm Tungsten T|3
http://www.palminfocenter.com/view_story.asp?ID=6073

Is it a coincidence that this was arguably Palm's best PDA and PDA sales have declined ever since?


USR Palm Pilot 1000 --> Palm Pilot Professional --> TRG SuperPilot --> Palm IIIc --> Palm V --> Palm M505 --> Palm M515 --> Tungsten T|2 --> Treo 600 --> LifeDrive --> iPhone

RE: 15 quarters = almost 4 years = release of Tungsten T|3
OctoberJones @ 11/10/2007 7:57:32 AM # Q
Exactly right. I'd jump at the chance to replace my T|3 with something better, but there is nothing better. I'd buy a new PDA at least every other year if there was a significant improvement, but Palm evidently doesn't want my money.

I suppose I'll buy a TX when the T|3 finally dies, but that purchase will be out of necessity, not delight.

RE: 15 quarters = almost 4 years = release of Tungsten T|3
Gekko @ 11/10/2007 11:30:47 AM # Q

you can't go home again. it's soon 2008. get a smartphone and stop living in the past.



RE: 15 quarters = almost 4 years = release of Tungsten T|3
SelonPi @ 11/10/2007 12:05:07 PM # Q
Not everyone works the same way. I could move to a "smartphone" if it runs an OS that will run all of my PalmOS apps on a 320x480 screen. Til then, I need my TX (and T3 backup). Still, I'd rather have my phone seperate. Palm has let us down. If they gave a crap and released improved models, I think the PDA would still be a popular device. I'm still hoping they wake up before it's too late - though I'm sure as not holding my breath.
RE: 15 quarters = almost 4 years = release of Tungsten T|3
PacManFoo @ 11/11/2007 5:11:43 PM # Q
Smartphone?? You call that an improvement? Yes I want to go BACK to a 320X320 screen. Talk about calling something dead and then tell you to get something that's even older. Look at the iPod Touch, that's what we want Palm. You smartphone fanatics can get the iPhone if that's what floats your boat so much.

320X320 is dead people. Move on.

PDA's Past and Present:
iPod Touch ???? Maybe soon.
Palm - IIIxe, Vx, M500, M505, Tungsten T, TX
Handspring - Edge, Platinum, Deluxe
Sony - SJ22
Apple - MP110, MP2000, MP2100

RE: 15 quarters = almost 4 years = release of Tungsten T|3
rokiteer @ 11/11/2007 9:16:09 PM # Q
I've got my second T|3 right here beside me, and have been waiting for a better model to come out on the market for way too long. I've been considering all kinds of alternatives lately, but haven't left the PalmOS behind (yet). I'm stuck on Datebk6, frankly. Meanwhile, my 3 yr old cellphone is crying out to be replaced, so I'm not sure how much longer I will put off the upgrade. Palm Inc., are you paying any attention??!!

RE: 15 quarters = almost 4 years = release of Tungsten T|3
twrock @ 11/12/2007 7:05:33 AM # Q
320X320 is dead people. Move on.

I almost decided to change my tagline and quote you on that one. Well said.


Thinking about Vista? Think again: http://www.cs.auckland.ac.nz/~pgut001/pubs/vista_cost.txt
Want an alternative? Try this: http://www.ubuntu.com/ or http://www.mepis.org/
RE: 15 quarters = almost 4 years = release of Tungsten T|3
mikecane @ 11/12/2007 8:46:47 AM # Q
>>>320X320 is dead people. Move on.

That's the ticket! Let's get all nasty and retro and go 160x160 again!

Hmmm... not enough caffeine for proper brain function again.

RE: 15 quarters = almost 4 years = release of Tungsten T|3
PacManFoo @ 11/12/2007 9:09:18 AM # Q
That's the ticket! Let's get all nasty and retro and go 160x160 again!

Whaaaat?

I'm talking about going from a 320X480 (TX,T5,T3,Lifedrive) back to a 320X320 Smartphone screen. What the ell you talking about?

PDA's Past and Present:
iPod Touch ???? Maybe soon.
Palm - IIIxe, Vx, M500, M505, Tungsten T, TX
Handspring - Edge, Platinum, Deluxe
Sony - SJ22
Apple - MP110, MP2000, MP2100

RE: 15 quarters = almost 4 years = release of Tungsten T|3
mikecane @ 11/12/2007 9:28:31 AM # Q
Didn't you stop to read the second line?

RE: 15 quarters = almost 4 years = release of Tungsten T|3
PacManFoo @ 11/12/2007 11:03:43 AM # Q
Ahhh I see now.

PDA's Past and Present:
iPod Touch ???? Maybe soon.
Palm - IIIxe, Vx, M500, M505, Tungsten T, TX
Handspring - Edge, Platinum, Deluxe
Sony - SJ22
Apple - MP110, MP2000, MP2100
RE: 15 quarters = almost 4 years = release of Tungsten T|3
Gekko @ 11/12/2007 6:19:39 PM # Q
RE: 15 quarters = almost 4 years = release of Tungsten T|3
atrizzah @ 11/13/2007 6:35:44 PM # Q
The PDA dead?

I've got a Treo 680, and if there were a standalone PDA I wanted, I'd divorce my PDA from my phone in a heartbeat. I'm really not experiencing much synergy between the phone and the "smart", besides the fact that when one breaks/crashes/freezes, so does the other.

Give me a tiny phone that can search my PDA's phonebook, and a pocketable PDA that lets me text through my phone, and I'll be happy. Hawkins was right about something: the smartphone isn't ever gonna be what we want it to be.

Peace Out
Alan

RE: 15 quarters = almost 4 years = release of Tungsten T|3
hkklife @ 11/13/2007 9:56:11 PM # Q
Amen!!

And don't forget the inability of Palm to get anything other than a SSS (small square screen) into their smartphones!

Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX-->Treo 700P

RE: 15 quarters = almost 4 years = release of Tungsten T|3
sremick @ 11/13/2007 11:24:52 PM # Q
"Exactly right. I'd jump at the chance to replace my T|3 with something better, but there is nothing better. I'd buy a new PDA at least every other year if there was a significant improvement, but Palm evidently doesn't want my money.

I suppose I'll buy a TX when the T|3 finally dies, but that purchase will be out of necessity, not delight."

How about the Palm T6?

http://vtbsd.net/palm_t6.jpg

Oh wait...



http://www.vtbsd.net/

Reply to this comment

Memo to Palm

mikecane @ 11/10/2007 11:34:15 AM # Q
Colligan: Why aren't our PDAs selling?

Users: Because they're CRAP!

Colligan: Nahhhh. That's not it.

BTW: Colligan, RESIGN!

RE: Memo to Palm
Gekko @ 11/10/2007 11:35:18 AM # Q

pdas are a small, tiny, niche, dying market. it's soon 2008. the world has moved on - and so should you.

RE: Memo to Palm
VampireLestat @ 11/10/2007 11:58:12 AM # Q
Let's get back to basics here.

A smartphone is a handheld.

What 'handheld' consumers wants are devices that are the size of the iTouch, and contain as many non-restrictive services in it as possible.
In other words, they don't like carrier control, contracts, restrictions.

I expect all handhelds to become the size and shape of the iTouch and will all eventually contain cell, voip, wifi, gps, rf, ir, bt, wimax, and a whole new generation of scanning technologies e.g., weather, echo, motion detection, heat sensing, radioactivity, sound, radar, blood sugar, colors, etc. and programs will become much smarter at using that new environmental data.

Expect devices to start beaming laser keyboards on any surface (that tech already exists but will evolve dramatically soon); say goodbye to the Foleo.

Cell tech is nothing but a drop in the bucket in terms of what awaits handheld technology. Current cell towers will be obsolete and replaced by much superior wave communications. All devices will be wirelessly connected to the Internet. Networking of data, knowledge and people is the futur. Handhelds are contributing and are pivotal to the pseudo-borgification of the human species (scary huh? hehe not if you retain your individuality ;-)

Anything that fits in your pocket and does computing tasks is called a handheld. A Treo, a TX, a Zire, A Centro, they are all handhelds.


RE: Memo to Palm
VampireLestat @ 11/10/2007 12:06:13 PM # Q
btw, the Canadian dollar is sustained at well over 1$ USD,

Palm is still savagely gouging Canadian customers by selling the Treo 680 at a crazy 499$ CAD while still selling to Americans at 399$ US.

The 680 should be like 370$ CAD.

Things like this just show what kind of an out of touch, anti-consumer-friendly company Palm really is. I don't expect Palm to amount to anything much in the big scheme of things in the mobile industry of the future.

They blew many great opportunities technology and market wise, and now they are just blatantly ignoring capitalist market rules. So according to market rules, consumers should simply stop buying Palm products; unless of course Canadians still feel that the 680 is still a value at 499$, which I doubt because their competitors are dropping prices in response to the currency value.


RE: Memo to Palm
mikecane @ 11/12/2007 9:30:29 AM # Q
>>>btw, the Canadian dollar is sustained at well over 1$ USD,

>>>Palm is still savagely gouging Canadian customers by selling the Treo 680 at a crazy 499$ CAD while still selling to Americans at 399$ US.

>>>The 680 should be like 370$ CAD

Welcome to the world of False Profits. It cooks their bottom line so Wall Street is all smiles.

Reply to this comment

apples and oranges

joad @ 11/10/2007 10:11:32 PM # Q
This is such a silly way to categorize.

It's like looking at 8-tracks, LPs, or Cassette sales and saying "doom, doom, doom." All along people were using music, but because of corporate design changes and decisions about whether to market certain hardware designs, of course sales of different conveyances will be affected. People who want to use the PalmOS can purchase overpriced, outdated and underspec'd PDAs or sell their soul to the phone carriers and get a tiny-screened Treo for their PIMs.

If you are counting strictly-defined "PDAs" and leaving out the smartphones that many are buying to replace them, then what's the point of these polls other than to further keep PDA evolution stymied?

|
**Another vote for a >100MB RAM Treo**

Reply to this comment

Devices

Timothy Rapson @ 11/11/2007 8:02:15 AM # Q
I am sitting here with my five friends.
I actually have an Axim X51v sitting 18 inches away on my desk. I use it to surf and word process.
There is a Samsung cheapy camera somewhere around here.
I have a Palm TE2 sitting next to the Axim. I carry it all the time for Diddlebug.
My wife just bought me a cute little Tracphone yesterday. It is there with its nice vibrate feature that Palm seems to find impossible to make available. It cost $13.50. I have 80 minutes airtime on it that cost $20.
Because Plaxo, Activsync, Palm Desktop, Outlook, and some evil witches spell give me as many as 5 entries for each of my friends I gave up and bought a little paper address book.

I am thinking of buying a Nokia 810 for surfing but it lacks the word processing of the Axim, the camera no longer swivels and the screen is hardly bigger than my Axim. Probably won't go there.

WHY IN THE WORLD can't Palm just make something that can give me back a pocket to keep my keys in? It's INSANE PALM.

RE: Devices
VampireLestat @ 11/11/2007 8:17:56 AM # Q
That is what happens when a company splits, re merges, sells its OS + brand, then re buys it, and starts selling a competing OS (WM).

RE: Devices
mikecane @ 11/12/2007 8:44:08 AM # Q
>>>I actually have an Axim X51v sitting 18 inches away on my desk. I use it to surf and word process.

You have my deepest condolences.

RE: Devices
AdamaDBrown @ 11/12/2007 2:20:27 PM # Q
Mike, you ever owned an X51v? There's a reason it has a cult following to rival or beat that of the T3.

RE: Devices
mikecane @ 11/12/2007 3:34:08 PM # Q
Battlestar Galactica Captain (hey, congrats on making it to Earth!!), I've used PPC. Axim is just PPC with VGA. Meh.

RE: Devices
abosco @ 11/12/2007 4:28:02 PM # Q
If you have deep pockets, then you should pick up an old NX series Clie. Those things were absolute beasts at text entry. My hands never cramped up from the keyboard or Decuma Handwriting Recognition, and the thing was a monster.

Yes, it was large. But damn did I get a lot of work done on that thing a few years ago. You can find them on ebay for $70 with a fresh battery. The battery on mine lasts 15 seconds on a full charge, and the camera is completely shot (seems like a poorly contacting cable - I'll open it up and take a look), but other than that, it's four years old and can still kick some ass.

Alternatively, I could use it as a brick to break and enter into cars.

-Bosco
NX80v + Wifi + BT + S710a

RE: Devices
freakout @ 11/12/2007 5:19:36 PM # Q
Battlestar Galactica Captain (hey, congrats on making it to Earth!!)

They already did:
http://www.youtube.com/watch?v=dwuUgQUywSU

Don't forget to shield your eyes. Exposure for longer than a few seconds may cause blindness.

RE: Devices
AdamaDBrown @ 11/12/2007 11:33:38 PM # Q
I've used PPC. Axim is just PPC with VGA. Meh.

That's rather like saying that a Lamborghini is just a car with a nice engine.

On a slightly more on-topic note, has anyone else eyeballed the Android demo video?

http://www.youtube.com/watch?v=1FJHYqE0RDg&eurl=http://code.google.com/android/

They showed it off on some unidentified big-screen prototype unit, probably the thing referred to as the "Dream." Too close of a shot to see if it's any unit we're familiar with. But among the features showed off were Open GL ES support, WebKit-based browser similar to the iPhone's, and threaded SMS. Looks interesting. I'm not sure how I feel yet about the direction they're going with the interface.

RE: Devices
freakout @ 11/13/2007 1:36:36 AM # Q
^^ I watched that this morning. Looked v. nice, actually - clean and simple, and I especially liked the way the incoming SMS briefly scrolled across the status bar at the top of the screen. Nice touch.

Tim
I apologise for any and all emoticons that appear in my posts. You may shoot them on sight.
Treo 270 ---> Treo 650 ---> Crimson Treo 680
RE: Devices
SeldomVisitor @ 11/13/2007 6:30:37 AM # Q
> ...Nice touch...

But much MUCH more interesting is, if you DIDN'T like that particularly well, YOU can change it to the way you would want.

Just a small matter of programming.

(...)

RE: Devices
mikecane @ 11/13/2007 8:50:49 AM # Q
>>>Decuma Handwriting Recognition

Break my heart by bringing that up. The program was sold to another company that never updated it for recent flavors of PalmOS. I really liked using it too. Another LOST OPPORTUNITY for Palm. They should have acquired the damned thing. (Just like they should have acquired that Russian HWR that MS eventually EXCLUSIVELY licensed for PPC: Calligrapher!)

RE: Devices
mikecane @ 11/13/2007 9:42:21 AM # Q
>>>They already did:
>>>http://www.youtube.com/watch?v=dwuUgQUywSU

>>>Don't forget to shield your eyes. Exposure for longer than a few seconds may cause blindness.

Doctor Zee landed. He works on skin now.
http://en.wikipedia.org/wiki/Jonathan_Zizmor

Reply to this comment

Dude! Look what Dell did for ME!

mikecane @ 11/12/2007 3:32:34 PM # Q
Dell Dude Now Tequila Dude at Tortilla Flats
http://nymag.com/daily/food/2007/11/dell_dude_now_tequila_dude_at.html

(Gekko hops into his Ford Pinto to drive sleeplessly into NYC for an autograph and photo. Post it here, Gekko!)

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