2003 Mid-Year PDA Update: Will Multimedia Features Attract New Users?

SUMMARY

The PDA market is struggling to grow the market by attracting new users. Manufacturers are adjusting their strategies to promote multimedia/entertainment functionality and connectivity options. In addition to an increase in integrated functionality, lower unit prices, improved operating systems, and improved power consumption are some of the benefits offered by the new generation of devices.

This report compiles research and analysis on the worldwide PDA market and survey results of PDA use. It provides unit shipments and market shares for the first half of 2003, as well as a forecast of unit shipments for 2002 to 2007. The report provides profiles of major vendors and their most recent products, and discusses market trends.

In-Stat/MDR will be including in its coverage of the PDA market those products that are focused on the consumer and corporate markets. Coverage will not include those PDAs specifically designed for industrial or retail markets, or "smartphone" products that are sold only by wireless service providers or manufactured by a traditional mobile phone manufacturer. Other messaging products, such as Research in Motion's (RIM) messaging devices, will not be included; however, PDAs with "phone" capabilities that are manufactured by traditional PDA manufacturers will be included.

TABLE OF CONTENTS

• Executive Summary
• Methodology
• Overview
  • Current PDA Market Trends
  • Survey Results: Use of PDAs
    • Participants were asked to categorize the primary use of their PDA as personal, business or both.
    • Those with a PDA were asked the manufacturer of their current PDA
    • PDA owners were then asked for the primary reason they purchased their PDA
    • PDA owners were asked to select which three features were most important to them when selecting their PDA
    • Panelists were asked if their current PDA had integrated wireless connectivity, and, if it did, whether or not they used this functionality
    • Panelists were asked what they spent on their current device and what they might spend on their next device
• PDA Components
  • The Next Generations of Operating Systems
    • Microsoft - Pocket PC (PPC)
    • PalmSource - Palm OS
  • PDA Processors Update
    • Intel
    • Motorola
    • Texas Instruments
  • Integration of Features/Emphasis on Multimedia
    • Memory
    • Audio (MP3)
    • Imaging
    • Integrated Wireless Connectivity
      • Bluetooth
      • 802.11b (Wi-Fi)
• PDA Vendors
  • Microsoft PPC-Based
    • Hewlett Packard (HP)
    • Dell
    • JVC
    • Toshiba
    • Others
  • Palm OS-based
    • Palm
    • Handspring
    • Sony
    • Others
• Worldwide PDA Forecasts
  • Worldwide PDA Unit Shipments 1st Half 2003
  • Forecast for Worldwide Unit Shipments of PDAs 2002-2007
  • A Look Ahead

List of Tables

• Table 1. Worldwide PDA Shipments Q1 and Q2 2003 (Units in Millions)
• Table 2. Worldwide PDA Unit Shipments, 2002-2007 (Units in Millions)

List of Figures

• Figure 1. Personal vs. Business Use (Base = 881)
• Figure 2. Palm Boasts the Largest Installed Base of PDAs (Base = 881)
• Figure 3. Primary Reason Purchased Or Plan to Purchase PDA (Base = 881)
• Figure 4. What Features Are Most Important? (Base = 881)
• Figure 5. Integration of and Use of Wireless Capabilities on a Handheld (Base = 881)
• Figure 6. What Business Users Plan to Spend on Their Next PDA Purchase (Base = 881 Current Users and 295 Planned Users)
• Figure 7. HP iPaq 5150, iPaq 2210, iPaq 5550, iPaq 1940
• Figure 8. JVC iO MP- PV131 PDA
• Figure 9. Gateway 100X PDA
• Figure 10. Treo 600
• Figure 11. Sony UX50
• Figure 12. Garmin iQue 3600
• Figure 13. Worldwide Manufacturer Market Shares 1H 2003
• Figure 14. Worldwide PDA Shipments and Growth 2002- 2007