IDC Predicts Smart Handheld Devices Market Will Surge in 1999
PRNewswire - 08:15 a.m. Oct 27, 1998 Eastern
FRAMINGHAM, Mass., Oct. 27 /PRNewswire/ -- In 1999, the
worldwide smart handheld devices market will experience robust
growth with device unit shipments reaching 10.7 million units,
according to a report issued today by International Data Corporation
(IDC). This represents an increase of 45 percent over estimated 1998
worldwide shipments of 7.4 million units. Although the market is
strong, the growing abundance of products and anticipation of new
smart phone devices offer a major challenge for vendors.
"It's become especially difficult to make an impact in the handheld
companion market as more devices alter the landscape, resulting in
heightened competition," said Diana Hwang, IDC's Research
Manager for Smart Handheld Devices. "Vendors need to be
aggressive and execute their strategy flawlessly in order to capture
significant pieces of the market."
During the 1H98, 3Com retained its worldwide lead of the handheld
companion market with 41.4 percent market share, up from 32.0
percent for the same period last year. 3Com continues to grow
despite the threat of new Palm- size PC devices. In 1997, 3Com
captured 34.9 percent share worldwide, leaping ahead of established
leader Sharp Electronics.
Key Findings
-- The PC companion market performed under expectations in 1997
due to cannibalization of Windows CE 1.0 devices by anticipated
Windows CE 2.0-based devices
-- H/PC Professional Edition devices will have little impact in 1998,
but gain corporate interest in 1999 and beyond
-- Palm-size PCs did not decrease 3Com's market share in the
1H98, and are not expected to overtake the Palm platform over the
next three years, until more tier-one handheld and PC vendors jump
into the market
-- The smart phone market continues to perform under expectations
due to high device costs, continuing product delays, and wireless
infrastructure issues affecting the US.
-- Vertical application device industry continues to exhibit steady
year over year growth as market consolidation settles down
In addition, IDC has published a new bulletin on Jupiter, now
known as the H/PC Pro Edition. The document concludes that 1999
will be an interesting test year for corporate adopters as they begin to
pilot first generation devices. IDC believes up to 300,000 H/PC Pro
Edition devices will ship worldwide in 1999, eventually becoming
the dominant form factor among all Windows CE keyboard-based
PC companions.
"H/PC Pro devices are designed to be desktop companions," said
Hwang. "They do not serve well as desktop or notebook
replacements, but rather fill a need among desktop users wishing to
gain mobility without the added cost of a notebook. They will
eventually offer corporate IT a lower cost of ownership, and will
become the secondary device of choice for many desktop users."
However, IDC believes that in order for H/PC Pros to be
successful, vendors must pass several hurdles including educating
the market and managing user expectations. Vendors also need to
provide PC-style service and support programs, and align device
price points so they do not collide with low-cost notebooks. IDC
believes it will take several generations of the devices to be released
before these issues become alleviated.
It's a Small, Small World: Worldwide Smart Handheld Devices
Market Review and Forecast, 1998-2002 (IDC #17456), is a revised
forecast of the worldwide handheld market. It contains unit
shipment, shipment value (US$), and average system price (US$)
forecasts, as well as final 1997 and 1H98 U.S. and worldwide
market share data.
Jupiter: Not For Many Moons (IDC #17466) contains device and
product specifications, IDC market opinion, and U.S. and
worldwide forecasts for the H/PC Pro, standard H/PC, and
notebook PC markets (used as a comparison). Both reports are
available for purchase by contacting Cheryl Toffel at 800-343-4952
or ctoffel@idc.com.
About IDC's Smart Handheld Device Research
IDC's Smart Handheld Device research program includes reports
based on end-user usage patterns and demand, in-depth market
forecasts and analysis, distribution channels, ruggedized devices,
and vertical market case studies. For additional information, please
contact Patrick Gorman at 508-935-4369.
About IDC
International Data Corporation is the information technology
industry's most comprehensive resource on worldwide IT markets,
trends, products, vendors, and geographies. IDC provides data,
analysis and advisory services to the world's leading IT suppliers as
well as IS professionals in finance, insurance, entertainment,
advertising, consumer goods and publishing. IDC's research and
opinions are based on the results of more than 300,000 end-user
surveys, in-depth competitive analysis, broad technology coverage,
and strategic analysis. IDC is committed to providing global research
with local content through its 500 analysts in more than 40 countries
worldwide. Additional information on IDC can be found on its Web
site at idc.com.
IDC is a division of International Data Group, the world's leading IT
media, research and exposition company.
All product and company names may be trademarks or registered
trademarks of their respective holders. SOURCE International Data
Corporation
Copyright 1998, PR Newswire
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