To: Dave who wrote (63113 ) 11/16/2001 7:44:37 PM From: nommedeguerre Respond to of 74651 Dave, ---------------------------------------------- Microsoft's Pocket PC Market Share Fell in 3rd Qtr, Study Says By Greg Chang San Jose, California, Nov. 4 (Bloomberg) -- Shipments of handheld computers running Microsoft Corp.'s Pocket PC software fell in the third quarter as the slowing economy curbed demand from corporate customers, a market researcher said. Customers also likely delayed purchases while waiting for a new version of Microsoft's software, said Todd Kort, an analyst with Gartner Dataquest. Shipments of handheld computers worldwide declined to 2.54 million from 2.81 million in the second quarter, less than Kort's forecast of 2.7 million. Devices running Pocket PC fell to 18 percent from 30 percent in the second quarter. The handheld computers, made by companies including Compaq Computer Corp. are generally more expensive than other handheld computers and are purchased mostly by companies for business use, Cort said. Such devices had been chipping away at the lead of Microsoft rival Palm Inc. ``For Pocket PC in particular, it was a terrible quarter, no question about it,'' Kort said. ``The economic conditions are continuing to decline.'' The new version of Microsoft's Pocket PC went on sale Oct. 4. Decliners, Gainers Compaq's shipments declined to 185,000 units from 300,000 while fellow Pocket PC maker Hewlett-Packard Co. saw shipments fall to 135,000 from 193,000. Palm, which makes its own devices and licenses its operating system to other makers, had third-quarter shipments of 754,000 units. Market share for computers using Palm's software fell to 52 percent from 55 percent. Palm still has the largest share, at 29.7 percent, down from 31.7 percent last quarter. Companies posting market share increases include Casio Computer Corp., which makes devices that run on its own software. Such devices usually cost about $75 to $150, compared to $450 for a Pocket PC device, Kort said. Casio's market share rose to 5.6 percent from 3.3 percent in the second quarter as shipments increased to 143,000 units from 94,000. Others gaining market share included Handspring Inc., which makes devices based on Palm's software. The company's shipments increased to 352,000, or 14 percent of the market, from 300,000, or 11 percent, in the second quarter, Kort said. Kort predicts fourth quarter shipments of handheld computers will total 2.8 million to 2.9 millionbloomberg.com .