Friday, July 30, 2004

Handheld market: Rising or falling? | CNET News.com

Handheld market: Rising or falling? | CNET News.com: "Handheld market: Rising or falling?
Published: July 29, 2004, 2:12 PM PDT
By Richard Shim
Staff Writer, CNET News.com


Shipments of handhelds in the second quarter were either hot or cold--it depends on whom you talk to and where you categorize Research In Motion's BlackBerry device.
Research firm Gartner announced Thursday that worldwide shipments of personal digital assistants for the second quarter grew at a healthy 12 percent, to 2.75 million units, compared with the same period a year ago. It was the first time in 10 quarters that shipments grew, according to Gartner. Good news for a struggling industry, right? Well, earlier this week, research firm IDC said worldwide shipments for the second quarter dipped 2 percent, to 2.20 million units.
BlackBerry shipments jumped 289 percent, to 510,000 units, in the second quarter, according to Gartner. That number roughly accounts for the gap of 550,000 units between Gartner and IDC estimates.
The difference in the analysts' totals underscores a change in the idea of what a handheld organizer is. Gartner included wireless data devices, such as RIM's BlackBerry and certain Hewlett-Packard iPaq models, in its shipment estimates, while IDC did not. After significant growth in shipments in early years, the handheld market has slowed dramatically. However, there are still innovations driving shipments--they just may be counted in different markets.
These distinctions in category could mislead investors and industry watchers judging whether a sector and its players are healthy. For example, PalmOne has the greatest market share in handhelds, according to both research firms, but its handheld shipments have been slipping ov"

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