Palm Gains Worldwide Marketshare

Palm Inc's share of the worldwide handheld market surged in the fourth quarter of 2001. Palm has long held the top spot in handheld sales and last quarter it widened the gap. According to a report from IDC, Palm-branded handhelds accounted for 42.6% of all handhelds shipped worldwide or 1.63 million. In the previous quarter, Palm had accounted for 33% of all handhelds shipped as it was recovering from problems earlier in the year.

Handspring continued its long tenure as the second largest handheld supplier, shipping 425 thousand units for an 11.1% share during the fourth quarter. This was a jump of 36% compared to the same quarter in 2000.

The handheld market as a whole is doing fairly well, considering the state of the world economy. Shipments of handhelds of any type are up 68% from the third quarter of 2001 at 3.83 million. However, that is down just over four percent from the same quarter the previous year.

The remaining top five are all Pocket PC licensees. Compaq is in third place with 9.6% of the market or 368 thousand units. Hi-Tech Wealth is a company that sells only in China but still holds the number four spot. Hewlett-Packard was in fifth with 6.2% or 237 thousand shipped.

These numbers aren't retail sales figures. This is the total number of handhelds shipped worldwide from manufacturers.

Related Information:

Article Comments

 (52 comments)

The following comments are owned by whoever posted them. PalmInfocenter is not responsible for them in any way.
Please Login or register here to add your comments.

Comments Closed Comments Closed
This article is no longer accepting new comments.

Down View Full Comment Thread

Palm plans updated PDAs and wireless devices

I.M. Anonymous @ 1/25/2002 8:08:54 AM #
Yankee Group on Palm's Wireless Strategy:
Bluetooth: *Finally in the Palm of Your Hands?
http://boards.fool.com/Message.asp?mid=16546821

Palm plans updated PDAs and wireless devices
http://makeashorterlink.com/?Q14E2245

Palm hitching its wagon to Bluetooth: That's a GOOD DECISION
http://makeashorterlink.com/?J53E2545

Synchronizing the Enterprise
http://www.cewindows.net/commentary/syncenterprise.htm

Wireless to revitalize handheld market
http://www.infosync.no/show.php?id=1348&page=1



RE: Palm plans updated PDAs and wireless devices
Ed @ 1/25/2002 10:37:26 AM #
> Palm plans updated PDAs and wireless devices

You do realize this ZDnet.uk article is entirely based on an article published here on PIC, don't you? It even says, "The photographs, which appear to be genuine, were later published along with a raft of specifications on the PDA hobbyist site Palm Infocenter. "

Here's the original article:
www.palminfocenter.com/view_Story.asp?ID=2864

-Ed

p.s. Please work a little harder at keeping on topic.

---
News Editor

RE: Palm plans updated PDAs and wireless devices
I.M. Anonymous @ 1/25/2002 8:51:27 PM #
>PDA hobbyist site Palm Infocenter.

Hobbyist site? Ouch, talk about a petty swipe from the compeittion there.

Don't let them get to you, Ed. You're more professional than any of the self-claimed professional sites when it comes to Palm news.

RE: Palm plans updated PDAs and wireless devices
I.M. Anonymous @ 1/26/2002 10:46:19 AM #
Ahhh, as I gaze into my 'crystal ball', actually the screen of my n710c Clie, I see Ed and PIC becoming bigger and better in 2002.

"a Pda hobbyist site???"

Screw the darn, dirty apes Ed, and dont let em get ya down!!

A PIC fan!!

George DaVall

Troll Bait

sandbuck @ 1/25/2002 8:28:50 AM #
GREAT NEWS!! I look forward to how the PPC trolls are going to try to spin their way out of this story. Face it. PPC is a niche market for IT professionals. They are used at work and left in the office/briefcase/car at the end of the day. Heck, PPC 2002 just now has repeating alrams for Outlook! LOL!!

http://pdabuzz.com/#newsitem1011891450,6136,

I gloat in your general direction!!

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 9:00:10 AM #
Palm is loosing ground in Europe 4/QT-01:
Palm 46%
Compaq 19%
HP 12%
Handspring 6%
Enjoy this, Palm troll

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 9:07:12 AM #
Just to add a little fuel to the fire, Surprisingly, Sony isn't even in the top five.

I just picked up my T-615C. I love it!!!

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 9:07:57 AM #
Yeah? Bathing has also been losing ground in Europe over the past several decades. That doesn't make me want to give up on my daily shower.

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 9:19:05 AM #
I can assure you that bathing among us europeans hasnt declined. Surprisingly we still take daily showers and even use shampoo too wash our hair ;-)

You asked how the PPC trolls would find a spin out of this story. Well, its quite easy: IDC afaik only measured retail sales. And contrary to your opinion the business market isnt only a niche market but quickly growing and including these fugures will show a completely different picture as shown in other surveys.

Also, unit shipments are not always the best measurement method. PPCs are sold at much higher prices. I think its safe to assume, they make a lot more money from selling them. So financially, and in the end thats the only thing that counts, PPC makers might be much better off even with a significantly lower market share. Thats my spin. And no, I dont hold any grudge against Palm or Palm users :-)

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 9:24:34 AM #
Palm is losing ground in Europe? So Palm is essentially doubling units shipped in Europe as compared to PPC units... And this is considering that Palm isn't even focusing distribution to this market, and they are still doubling out.

Does not sound like the world is about to end for Palm, check the numbers, then check your head.

RE: Troll Bait
peter167 @ 1/25/2002 10:10:42 AM #
Don't worry. They have checked their head. That's why they have come up with the idea/imagination that PPCs are in heaven and Palms are in hell.

Who is the devil here? ^_^

margins vs market share, etc.
I.M. @ 1/25/2002 10:27:02 AM #
Profit margins are certainly of primary importance to hardware companies, however, for us users, there is much more to consider.

Market share will greatly influence the availabilty and price of software and peripherals in the near future. Those who have heard the "Pocket PC is gaining ground" idea are looking for hard evidence to support their investment in the platform.

Companies like ePocrates don't care how profitable the hardware is. They want to know that the market share for PPC supports a significant investment to develop for the platform. So far, apparently, they haven't seen that it is worthwhile.

Other companies, sensing that their Palm OS products will outsell their Pocket PC products 4 to 1, will ensure that they spread their development costs for PPC over fewer units, thus raising price.

So, it's not all about margin, just as it's not all about bathing. It's also about volume of water, frequency of laundry, and availability of air conditioning.

RE: Troll Bait
sandbuck @ 1/25/2002 10:28:55 AM #
I didn't say the business world was a niche market. I said that considering the overall volume of PDA sales PPC is a niche OS.

And to the comment that price per unit is more important than volume. I would be more than happy for Compaq to sell one PDA next year at a cost of $1 Billion. That won't stop the Palm Revolution. Or Palm market share. Or an other facet of the Palm OS juggernaut. It just means that there is just one (1) guy out there with his billion-dollar PPC thinking that he is better than every other PDA owner in the world.

I'd even visit his cage once a week to toss him a ripe banana! :-D

PPC punks....


NOT Retail Numbers
Ed @ 1/25/2002 10:32:29 AM #
> IDC afaik only measured retail sales.

No, you didn't read the whole article. Here's the last paragraph again:

"These numbers aren't retail sales figures. This is the total number of handhelds shipped worldwide from manufacturers. "

---
News Editor

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 10:43:54 AM #
Wow, the PPC defender (otherwise known as "Troll") in this thread doesn't know much about business. Profit margin is great, but MARKET SHARE is more important for the long-term. Why do you think companies will undercut competitors, possibly losing money in the process? To gain market share--once I sell you my cheaper product, you're more likely to buy more of it, or to buy the upgrade. The upgrade is likely to create greater profits in the long run.

Consider this simplified example:
Palm sells 100 m100s at $100 apiece. They earn $10,000 in revenue off those. Assuming they net $50 per unit, they've got $5,000 profit.
Meanwhile, Compaq sells 50 iPaqs at $500 apiece. They earn $25,000 in revenue. Assuming they net $300 per unit, that's $15,000 profit.
On it's face, it looks like Compaq's kicked Palm's butt. BUT, Palm has twice the market share, which affects the long-term: Palm and Compaq release new models. Palm's builds on the simple UI of the m100 and adds color & expansion. Compaq's is basically an effort to fix all the #%!$@# problems in the previous unit, plus a couple of minor upgrades. The Palm model goes for $400, and Palm nets $300 off every unit. The Compaq goes for $600, and Compaq nets $400 off every unit. 80 of Palm's 100 original buyers decide to upgrade. Palm nets another $32,000. Compaq's original buyers don't see a reason to drop another $600, so only 20 of them go for the new iPaq. Compaq nets $8,000.

Over the long haul, Compaq would've earned profits of $23,000. Palm would've earned $37,000. This is why automakers, among others, develop low-end, mid-range, and high-end models. It's called the Quantity-Quality shift. It's also why Palm REALLY needs to put out a killer high-end model soon.

Either way, Market Share matters...


RE: Troll Bait
mikecane @ 1/25/2002 10:45:16 AM #
I think retail sales would tell a very different story. Whatever store I am in, I always see more interest and more sales of Palms than PPCs. (Yeah, PPC people would say "You're in the wrong store" -- but these are stores where people *buy* them, dammit!)

RE: Troll Bait
Foo @ 1/25/2002 10:56:47 AM #
Mike, I'm actually surprised that retailers even carry PPC devices at all. They are so expensive, only a small percentage of consumers will be willing to pony up the dough to actually buy one of these mellifluous marvels. Despite the spin created by the PPC community, the PalmOS still dominates because it more practical. Regardless of how outdated the OS may be, and it is!

Retail Sales
Ed @ 1/25/2002 10:58:00 AM #
Here's the most recent U.S. retail sales figures that I have. The order is similar but Palm's and Handspring's percentages are higher.

www.palminfocenter.com/view_Story.asp?ID=2880

---
News Editor

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 10:58:56 AM #
Going back to (West) Europe...
Unit shipped 4Qt-01
-------------------
Palm 300.030 (-21,8%)
Compaq 124.362 (+143,8%)
HP 78.584 (+89,6%)
Handspring 40.500
Sony 29.510


RE: Troll Bait
I.M. Anonymous @ 1/25/2002 11:03:48 AM #
Did you ever take an American cab? Yo homes, smell you later! Stop bashing the Europeans, they kept Palm floating. And yes, shampoo sales in the EU are up again this year as is domestic water consumtion!


RE: Troll Bait
I.M. Anonymous @ 1/25/2002 11:18:37 AM #
"And yes, shampoo sales in the EU are up again this year as is domestic water consumtion!"

Including France?

RE: Troll Bait
I.M. Anonymous @ 1/25/2002 12:36:06 PM #
"Companies like ePocrates don't care how profitable the hardware is. They want to know that the market share for PPC supports a significant investment to develop for the platform. So far, apparently, they haven't seen that it is worthwhile."

Another reason why companies would rather not develop for a microsoft platform is because if they're successful, Microsoft will develop a competing product at a cheaper price or include it in the OS. Netscape, WordPerfect, and Borland were destroyed by these methods.



RE: Troll Bait
I.M. Anonymous @ 1/25/2002 1:13:41 PM #
No, France was not included in the research. Investigators could not stand the smell when entering houses for interviews. Je suis un rockstar.

RE: Troll Bait
I.M. Anonymous @ 1/26/2002 5:44:13 AM #
No, PPC is not for IT professionals. It is for those who are easily gulled into paying for silly (and useless) features.

Where are the Japanese Brands?

I.M. Anonymous @ 1/25/2002 10:41:15 AM #
I'm not just talking about Sony, but also PPC brands like Casio and such.

Something must be wrong about this survey.......

RE: Where are the Japanese Brands?
I.M. Anonymous @ 1/25/2002 8:20:30 PM #
>I'm not just talking about Sony, but also PPC brands
>like Casio and such. Something must be wrong about
>this survey.......

No, nothing is wrong "about" this survey. You just have trouble facing reality when it doesn't fit your biases.

RE: Where are the Japanese Brands?
I.M. Anonymous @ 1/26/2002 2:28:39 PM #
Question for Ed Hardy,

Do you know, or does anyone else know for that matter, what Sony's percentage is in this survey? I'm just curious. I saw what their retail sales figures are in your other story, but the IDC figures in this story don't include anything on Sony, or did I miss it somewhere??

Thanks.

RE: Where are the Japanese Brands?
I.M. Anonymous @ 1/27/2002 12:19:57 PM #
The total of the top five companies has a market share of approximatley 77%.
It is obvious that the other brands such as Sony, Casio, etc have the rest of market share.
It is that simple.

Foo Fighter

Ed @ 1/25/2002 10:41:51 AM #
These are the figures you were asking for earlier this week. These aren't retail sales; this is the total number of handhelds shipped in the world to retail, direct sales, or whatever. Sorry I couldn't get you the Sony numbers you wanted. They didn't make the top 5 and those are the only figures I had.

---
News Editor
RE: Foo Fighter
I.M. Anonymous @ 1/25/2002 10:49:21 AM #
Foo, what a biased scew view. "Palm Gains Worldwide Marketshare" article based on MFG shipments.

The MFG ships all that palm buys, even if they stink at their forcasts. But to call this a market share growth statement is poor reporting.

RE: Foo Fighter
Ed @ 1/25/2002 10:51:38 AM #
I think you misunderstood me. We published an article earlier this week on how Palm was first in retail sales:
www.palminfocenter.com/view_Story.asp?ID=2880

Foo Fighter complained that this was an unrealistic measurement and asked for the numbers of handhelds actually shipped, which this article lists.


---
News Editor

RE: Foo Fighter
Foo Fighter @ 1/25/2002 10:51:45 AM #
Thanks for remembering me Ed! :)

It's nice to see some actual concrete data (worldwide shipments) rather than market share based on the number of people who walk into Best Buy.

RE: Foo Fighter
mikecane @ 1/25/2002 11:09:33 AM #
But, Foo! They will have to redo the figures because you returned the T615C you bought! (Did you think that would escape my notice? Heh-heh!)

RE: Foo Fighter
Foo @ 1/25/2002 11:16:44 AM #
LOL! The sad part is, I wish I would have kept it! I really fell in love with that display, and the physical design. No other company can design consumer gadgets like Sony. I'm half tempted to ask for a replacement, just to give it a fair chance. Buyer's remorse really sucks!

RE: Foo Fighter
Foo Fighter @ 1/25/2002 11:20:46 AM #
Ed said: "Foo Fighter complained that this was an unrealistic measurement and asked for the numbers of handhelds actually shipped, which this article lists."

No, not unrealistic. Just not conclusive. The survey conducted by IDC is more telling since it actually accounts for all units that have shipped worldwide. You can't simply measure the number of PDAs being purchased at consumer electronics retailers. Corporations, and even the education market, do not make procurements from retail outlets. It would be like measuring only retail PC sales without counting direct sales, which would completely exclude Dell.

RE: Foo Fighter
mikecane @ 1/25/2002 11:30:33 AM #
Repent, Foo, repent! Go get that T615C again!

I got to play with one at SonyStyle in NYC yesterday. *Marvelous!* I want it!!

RE: Foo Fighter
Foo Fighter @ 1/25/2002 11:36:13 AM #
Did you try using the picture viewer? I've never seen photos that clear and sharp on PDA or a Desktop!!!!

RE: Foo Fighter
mikecane @ 1/25/2002 11:55:09 AM #
It had pictures on it and they were gorgeous!!

RE: Foo Fighter
I.M. Anonymous @ 1/25/2002 10:46:20 PM #
Oh you guys stop it!!! I can't stand it anymore!!! Why are you guys so damn lucky you even got a hold of a T-615c!!!

I'm really waiting for this unit for months now. And now that it's finally available, I can't get it anywhere out here. Any suggestions how can I get one? Order online? Get myself into slavery? C'mon guys there has got to be a way.

RE: Foo Fighter
Ed @ 1/26/2002 9:53:11 AM #
Foo Fighter said on PDA Buzz:

> By the way, don't you just love the way Palminfocenter puts a spin
> on every piece of good new for Palm?
>
>Example:
>
> PDABuzz headline: Holidays better than expected for PDA's, Palm rebounds

> PalmInfoCenter headline: Palm Gains Worldwide Marketshare

Foo Fighter, if you are going to accuse me of being biased, could you at least do it here so I don't have to stumble across it days later?

---
News Editor

Top View Full Comment Thread
Achtung! Only the first 50 comments are displayed within the article.
    Click here for the full story discussion page...

Account

Register Register | Login Log in
user:
pass: