PDA sales see steep decline; outlook grim

- Gary Thayer, News Editor

March 24, 2005 -- (MobileVillage) -- Yet another research company is predicting the death of the PDA. The traditional PDA is heading for major declines in sales, and is nearing the end of its life as a major product segment, according to a new report from Dublin, Ireland based Research and Markets.

Worldwide PDA shipments reached only 8.7 million units in 2004, down from 10 million in 2003, the high-tech market research firm says. The outlook for upcoming years is not good, as the PDA market will have a negative Compound Annual Growth Rate (CAGR) of -21.5% during the 2004-2009 period.

This report defines PDAs as handheld devices that are either pen or keypad-centric, and are capable of synchronizing with desktop or notebook computers. Some products may include wireless capabilities that enable Internet access and voice communication.

By 2009, it is expected that most PDA's will be devices designed for specific vertical markets and low-end products. The market decline will occur as users switch to other products, such as smartphones and portable media players, a natural evolution of the category.

The report has also found that:

• Manufacturers will introduce more corporate-focused and niche-focused devices, such as those incorporating GPS, this year.
• Intel's XScale processors continue to be the most popular; however, most manufacturers are using processors from several vendors across their product lines.
• Bluetooth, Wi-Fi, and cellular wireless devices will be offered by more traditional PDA vendors as they look to compete in the smartphone market.
• By the end of 2005 there will be significant price reductions and more
  stylishly designed smartphones, thus attracting more users from PDAs to
  this category

This report, "The PDA Market: 2004 Review and Outlook for 2005", offers profiles of major vendors and their most recent products. It also discusses market trends, opportunities and challenges facing this mature market. The report forecasts unit shipments and revenues for the period 2003 to 2009 and depicts processor market shares and revenue. In addition, it provides a review of the market in 2004, in terms of unit shipments, vendor and operating system market shares and trends.

The report is available for purchase on the Research and Markets web site.

Recent Related Stories:

The US-Europe mobile divide (Network World)

Otter offers rugged case for consumer PDAs

Mio releases 168RS Pocket PC handheld with GPS mapping in North America

Back to MobileVillage News Page