Handheld device sales dip again

SAN FRANCISCO: Global shipments of handheld computers fell for the fifth consecutive quarter, squeezed by surging demand for devices that combine cellular telephones with palmtop organizers, market research firm IDC said on Wednesday.

Shipments of 1.9 million digital organizers in the first quarter were down 12 percent from the same period last year and 31 percent from the fourth quarter, IDC said.

By contrast, the worldwide converged mobile device market kept up its torrid growth, with shipments rising 135 percent year-over-year, its third straight quarter of triple digit growth, to 8.4 million units.

"The handheld device market is facing stiff competition in saturated markets, while the converged mobile device market offers opportunities for new growth to handheld device and mobile phone vendors," said IDC analyst David Linsalata.

"Unless handheld device vendors can successfully extend the meaningful use of handheld devices beyond (personal information managers), the opportunity for future growth will remain firmly in the converged mobile device segment of the market.

PalmOne Inc. held onto its No. 1 market share position, even though its unit shipments in the first quarter fell 24 percent in a shrinking market, IDC said. PalmOne's worldwide share declined to 33 percent from 38 percent a year earlier.

Hewlett-Packard Co., maker of the iPAQ, ranked No. 2, with 26 percent share in the first quarter, down slightly from 27 percent a year ago. Dell Inc. saw its share rise to 11 percent from 7 percent a year ago, IDC said.

In the converged handheld device market, the top spot went to the world's largest cellular phone maker, Nokia, which had 65 percent share of the global market, up from 50 percent a year earlier, IDC said.

Research In Motion Ltd. best known for its Blackberry device, ranked No. 2, with 9 percent of the market, down from 12 percent a year earlier and Fujitsu was No. 3, with 9 percent share, down from 10 percent a year earlier, IDC said.