IDC says handheld device market is slowing, but will show 43% growth in 2001
Semiconductor Business News
(06/20/01 13:54 p.m. EST)
FRAMINGHAM, Mass. -- The slowdown in the U.S. economy is expected to "put the brakes'' on the worldwide PDA and handheld device market in 2001, but the business is still promising in the long term, according to a new report from International Data Corp. (IDC) here today.
Worldwide shipments of PDAs and related handheld devices are projected to grow by 43% this year, from 13.6 million units in 2000, to 19.4 million in 2001, according to IDC.
The market research firm also estimated that worldwide shipments for handheld devices will increase at a compound annual growth rate of 39% to 70.9 million by 2005.
Still, the market for handheld products is slowing to some degree. In 2000, the market for these products grew by 88% over 1999, according to IDC.
"Just six months ago, handheld devices were the bright spot amid dismal expectations for other types of personal technologies such as PCs and mobile handsets," said Kevin Burden, who tracks the market for IDC. "Still, no one is saying the handheld industry is circling the drain," he said.
The U.S. handheld market represented 49% of the world's shipments in 2000. But U.S. shipments will decline to 38% by 2005, the report said. Shipments for handhelds in Asia/Pacific will increase the fastest, showing an annual growth rate of 60% from 2000 to 2005, IDC said.
In terms of devices, personal companions are the most popular. IDC estimates they will represent 83% of worldwide shipments in 2001. |
