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News
Issue #2002 - 30
(August 2002)
(Updated Aug.
7, 2002)
MARKET OUTLOOK
& TRENDS
Wireless Device Shipments to Europe Drop by 21%, IDC says
Despite the cornucopia of new devices entering the market during the
second quarter, the wireless device market in Europe declined by 21
percent, reported research firm IDC.
According IDC’s preliminary figures, the number of smart
handheld devices shipped dropped from 568,000 units to 450,000, with
Nokia taking the hardest hit, recording a decline of 51 percent year
on year.
These figures only exemplify the fact that the wireless device
market continues to be beset by problems, "such as the need for
compelling reasons to upgrade, the cost of integrating new devices
into organizations, as well as justification of the benefits of
ownership," commented Andy Brown, research manager for Mobile
Computing at IDC.
Top Five Vendors
- HP (including Compaq)
continued to take a comfortable lead
over Palm with 32 percent market share. The strong showing of
Compaq’s high-end Bluetooth-integrated devices in the first
quarter, analysts believe, prevented stronger growth in the
following quarter.
- Palm
recorded a decline of 14 percent year on year but
managed to maintain a high-end product mix, which help push its revenues up. The demand for its new color products accounted for
60 percent of sales.
- Nokia
continued to drop the price of the 9210 Communicator
to simulate sales. The introduction of the Symbian-based 7650
device toward the end of the quarter sparked interest that may
carry over into the third quarter.
- Handspring
recovered at the end of the quarter due to the entry of the Treo 270 wireless converged device.
- Sony
relied on heavy advertising of its new products
lines, namely the Vaio notebook and the NR70V, to push it into the
top five. The company focused on integrating hardware and software
and interoperability with its other devices.
With the third quarter release of the HP Jornada 928, Sony Ericsson
P800 and other devices, analysts are hoping that market for
converged device should improve in the coming months.
For more information: http://www.idc.com
MobileInfo Advisory & Comments: These numbers do show
continuing problems in the wireless device market. However, you
should be concerned by what you see in IDC report only if you are a device
vendor. As a device vendor, you need to stay your course, navigating
carefully in troubled waters. Even so, the worst may be over. If you have a legitimate
business application for the enterprise, you should go ahead and
implement it today or tomorrow. There are enough device choices for
both enterprise and consumer applications. Do not get confused by
multitude and variety of devices. Application requirements
and user preference analysis will generally reduce your choice to a small
subset. Remember, the device scene will continue to
evolve. Be prepared to change your device (and not your application
software, necessarily) every two to three years, even for the
enterprise.
Note: This news release may contain forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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