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To: Paul Engel who wrote (140355)	7/28/2001 3:54:07 PM
From: Joseph Pareti	Respond to of 186894

when the going sets tough, WINTEL gets going :-) Compaq Computer Corp's iPaq Pocket PC handheld computer gained strongly against Palm Inc's rival offerings in the Western European market during the second quarter of 2001, according to the latest research from Gartner Dataquest. However, this is against the background of a dramatic slowdown in shipments, with a paltry 7.1% increase in sales compared to the same period last year. According to the study, Compaq's market share for its handhelds increased from 4.5% in the second quarter last year to 30.2%. Market leader Palm's share for the quarter was 32.3% in the second quarter, compared to 59.5% in the same period last year. The findings provide more evidence that Compaq, if not the rest of Microsoft Corp's Pocket PC handheld partners, is starting to mount a strong challenge against Palm in the handheld market. Psion Plc's recent decision to pull out of the handheld market is graphically explained by the Gartner Dataquest figures. Psion, which was once the major player in the European PDA market, dropped from an 18.2% share last year to an 8.2% share for the second quarter. However, the slowdown in the overall market for handheld computers is not good news for any of the vendors in the European market. Total sales in Europe for the quarter were 507,419 units, a growth of 7.1% on the same period last year. The research firm contrasted the second-quarter growth with an overall growth in the European market of 123% last year. "After years of strong growth, the Western European PDA market came to an abrupt hold this quarter," said Thomas Reuner, an analyst with Gartner Dataquest in London. "High inventory levels that characterize a still immature market came back to haunt most vendors. These problems were exacerbated by badly managed product transitions and insecurity about how the wireless future will shape up."