Gartner Says Wireless E-Mail Applications Drive Worldwide PDA Shipments Increase 25 Percent in First Quarter of 2005

May 4, 2005 — Worldwide personal digital assistant (PDA) shipments totaled 3.4 million units in the first quarter of 2005, a 25 percent increase from the same period last year, according to Gartner, Inc. This was the strongest first quarter the industry has experienced.

The average selling price (ASP) of PDAs increased 15 percent in the first quarter of 2005 compared to the first quarter of 2004. The ASP was $406, which is the highest since Gartner began ASP estimates in 2000. Gartner analysts attributed the increased prices to the popularity of high-end wireless models.

"PDAs with integrated wireless local area network (LAN) or cellular capabilities accounted for approximately 55 percent of all PDAs shipped in the first quarter of 2005," said Todd Kort, principal analyst in Gartner's Computing Platforms Worldwide group. "This increase is primarily the result of the growing popularity of wireless e-mail, with users favoring larger displays and QWERTY keyboards that are operated with both hands."

Research in Motion's BlackBerry shipments grew 75.6 percent in the first quarter, as the company became the No. 1 ranked vendor in worldwide PDA shipments (see Table 1). palmOne PDA shipments declined 26.3 percent, and its market share fell to 18 percent, its lowest market share since it entered the market in 1996. Nokia's re-entry into the wireless PDA market with the 9300 and 9500 enabled it to move into the No. 4 position.

Table 1
Worldwide: Preliminary PDA Vendor Shipment Estimates, 1Q05 (Units)
Company 1Q05 Shipments 1Q05 Market Share (%) 1Q04 Shipments 1Q04 Market Share (%) 1Q05 - 1Q04 Growth (%)
RIM 711,000 20.8 405,000 14.8 75.6
palmOne 614,750 18.0 834,591 30.5 -26.3
HP 601,352 17.6 575,853 21.0 4.4
Nokia 340,000 9.9 - 0.0 N/A
Dell 217,000 6.3 163,250 6.0 32.9
Others 935,010 27.3 757,378 27.7 23.5
Total 3,419,112 100.0 2,736,072 100.0 25.0
Notes: Totals do not include smartphones, such as the Treo 650 and BlackBerry 7100, but include wireless PDAs, such as the iPAQ 6315 and Nokia 9300. Columns may not add to totals shown because of rounding.
N/A = Not applicable
Source: Gartner Dataquest (April 2005)

Microsoft has become the No. 1 PDA operating system (OS), as it accounted for 46 percent of worldwide shipments (see Table 2). RIM assumed the second position, as Palm OS slipped to the No. 3 ranking, due to Palm OS shipments declining 38.8 percent. "We expect that palmOne will be adding other operating systems and setting more of its own direction, while PalmSource is redirecting itself toward Linux and smartphones," Mr. Kort said.

Table 2
Worldwide: Preliminary PDA Vendor Shipment Estimates by Operating System, 1Q05
Company 1Q05 Shipments 1Q05 Market Share (%) 1Q04 Shipments 1Q04 Market Share (%) 1Q05 - 1Q04 Growth (%)
Windows CE 1,573,062 46.0 1,100,008 40.2 43.0
RIM 711,000 20.8 405,000 14.8 75.6
Palm OS 684,750 20.0 1,119,714 40.9 -38.8
Symbian 340,000 9.9 - 0.0 N/A
Linux 27,300 0.8 34,800 1.3 -21.6
Others 83,000 2.4 76,550 2.8 8.4
Total 3,419,112 100.0 2,736,072 100.0 25.0
Notes: Totals do not include smartphones, such as the Treo 650 and BlackBerry 7100, but include wireless PDAs, such as the iPAQ 6315 and Nokia 9300.
Columns may not add to totals shown because of rounding.
Source: Gartner Dataquest (April 2005)

The Western European PDA market grew 84.3 percent to 1.3 million units in the first quarter of 2005, while PDA shipments in the also totaled 1.3 million units, a 5 percent increase. PDA shipments in Asia/Pacific declined 2.7 percent with approximately 352,000 unit shipments. In Japan, PDA shipments declined 21.3 percent with nearly 80,000 units shipped in the first quarter.

Additional information is available in the Gartner report PDA Market Has Record First Quarter, Growing 25 Percent. The report is available on Gartner's Web site.

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