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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Dec 18 4:00 PM EST

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To: Dick Smith who wrote (25285)12/15/1998 10:00:00 AM
From: Moonray  Read Replies (1) of 45548
 
INTELECT ASW Reports Windows CE Devices Gaining Handheld Computer
Market Share - BW, 09:13 a.m. Dec 15, 1998 Eastern

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Dec. 15, 1998--In the
burgeoning category of handheld computers, there are a host of hot new competitors.
According to leading IT marketing information provider INTELECT ASW,
Windows(R) CE devices accounted for 25% of handheld computer retail sales during
the third quarter of 1998. This is a 7-point gain over first quarter figures and a 10-point
gain over the second quarter for 1998.

Although 3Com PalmPilot(TM) remains the market leader with a 75% control of retail
sales, consumers now have more choices than ever. The handheld computer category
experienced a surge in model offerings during 1998 with an increase from 44 models in
January to 62 devices sold at retail by September, INTELECT ASW reported. Of those
models available in September, 50% were Windows CE devices.

"It isn't surprising that Windows CE devices are beginning to impact PalmPilot.
Compatible with Windows 95, Windows CE models are preferred by many customers
who want their handheld to use an operating system similar to their existing desktop or
laptop," explains John Genovesi, vice president of peripherals for INTELECT ASW.
"We expect this to continue to work in this category's favor and for Windows CE
devices to capture more sales moving forward."

Besides competing against PalmPilot for the consumer dollar, Windows CE models are
also challenging each other. Windows CE device sales are always led by the companies
that introduce the most advanced and innovative product, says Genovesi. Such changes
in brand ranking within the Windows CE category through the third quarter in 1998
are:
Brand Ranking     1st Quarter       2nd Quarter       3rd Quarter

1 Hewlett Packard Casio Philips
2 Sharp Hewlett Packard Casio
3 Casio Philips Hewlett Packard
4 Philips Sharp Sharp
Price remains an advantage for PalmPilot. PalmPilot devices sold for on average $200
less than Windows CE models during the third quarter of 1998. However, price
convergence is expected to continue between PalmPilot and Windows CE, with future
gains likely for Windows CE models. Retail price comparisons between PalmPilot and
Windows CE for 1998 are:
Categories        1st Quarter       2nd Quarter       3rd Quarter
Windows CE $685 $600 $550
PalmPilot $287 $337 $360
Top 5 Windows CE Handheld Computers

The top 5 market leaders for Windows CE handheld models as reported by INTELECT
ASW and based on retail sales units for the third quarter of 1998 are:
1. Casio E10
2. Philips NINO312
3. Hewlett Packard 660LX
4. Philips NINO301
5. Philips VELO 500

About INTELECT ASW

INTELECT ASW Marketing Services L.L.C. is the premier provider of sales tracking
services for manufacturers and retailers of consumer electronics, home appliances,
information technology and imaging products. INTELECT ASW is a joint venture of
three leading marketing information providers: The NPD Group, Inc.; GfK AG; and
Audits and Surveys Worldwide, Inc.

INTELECT ASW provides compatible world-class information on product movement,
share and pricing in the U.S., North and South America, Europe and Asia. Data are
collected from a comprehensive panel representing each industry's key distribution
channels. INTELECT ASW clients include most of the major manufacturers and
retailers in each industry it tracks.

Copyright 1998, Business Wire

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