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Framingham (pte040/24.04.2003/15:16) - The worldwide market for handheld computers is shrinking at an alarming rate. As reported today by market researchers IDC http://www.idc.com , sales of handhelds dropped by over 21 per cent in the first quarter of this year.
The collapse is even more marked when compared to the "Christmas quarter", with sales falling by 26 per cent to 2.45 million units sold around the world. In spite of heavy losses, Palm was able to retain its dominant position on the market, followed by Hewlett-Packard, which has knocked former second place firm Sony back to third place http://www.idc.com/getdoc.jhtml;jsessionid=0L4VXERL0BSU2CTFA4FCFFAKMUDYWIWD?containerId=pr2003_04_23_125718 .
"The post-Christmas drop in private and business consumption reflects the difficult economic situation in the world," said IDC researcher Ross Sealfon. "Aside from a season-related decrease, fears of terrorism and the war in Iraq have put a damper on handheld sales," said Sealfon.
According to IDC, handhelds are simply no longer attractive to consumers or businesses - in spite of the availability of new, lower-priced models and affordable high-quality products.
Selling over 880,000 units in the first quarter, Palm was twice as successful in sales as Hewlett-Packard. But Palm has also suffered from the lagging market, reporting losses and a decrease in turnover last month. Dell and Toshiba are the fourth and fifth largest sellers of handhelds.
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