Sales of unconnected handheld devices continue to plummet as users show increased interest in converged mobile devices and other consumer electronics products, according to the latest quarterly report from IDC. Underscoring the dismal market outlook, leading vendor Dell is exiting the market.

IDC's definition of “handheld devices” is basically limited to the traditional PDA, or personal digital assistant, where Microsoft's Windows Mobile Classic is fairly dominant. Linux is not especially well-represented today in PDAs, although Sharp continues to market the Linux-based Zaurus in Japan, while Tripod Data Systems offers Linux-based versions of several ruggedized PDA models.

IDC's definition excludes “converged devices” with integrated telephony functions — i.e., mobile phones that also include PDA-like functions. It also appears to exclude emerging consumer device categories where Linux is strong. Recent Linux device wins include a Wi-Fi enabled MP3 player, eBook reader, instant message appliance, multi-function Internet tablet, portable media player, mobile VoIP phones, and “Mobile Internet Devices”.

IDC reported that just over 900,000 unconnected handheld devices shipped in the first quarter of 2007, down 36.3 percent from the previous quarter, and down 40.6 percent for the quarter year-on-year. This marks the thirteenth consecutive quarter of year-on-year decline, IDC said.

Personal information management, “the key feature that once distinguished handheld devices, can now be found commonly on converged mobile devices,” noted Ramon Llamas, research analyst with IDC's Mobile Device Technology and Trends team. “The growing popularity of converged mobile devices combined with declining prices for laptop computers have put tremendous pressure on the handheld device market.”

Vendor rankings

The top five vendors for the quarter were almost unchanged from the prior quarter, with Sharp taking the number five position away from Acer.

Top Five Handheld Device Vendors — Q1 2007 (Preliminary)

Vendor	Q1 2007 Shipments	Market Share	Q1 2006 Shipments	Market Share	Y/Y Growth
Palm	295,250	32.1%	475,000	30.7%	-37.8%
HP	199,400	21.7%	346,000	22.3%	-42.4%
Mio	138,631	15.1%	104,609	6.8%	32.5%
Dell	78,000	8.5%	143,100	9.2%	-25.4%
Sharp	44,000	4.8%	99,000	6.4%	-55.6%
Others	164,635	17.9%	381,490	24.6%	-56.8%
TOTAL	919,916	100.0%	1,549,199	100.0%	-40.6%

(Source: IDC Worldwide Handheld QView, May 2007)

 
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