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  Palm increases share of PDA market
Time: 09:07 EST/14:07 GMT | News Source: E-Mail | Posted By: Brian Kvalheim

Palm - soon to be renamed palmOne - has increased its share of the worldwide PDA market. Handhelds running the Palm OS now account for more than 50 per cent of worldwide shipments, according to the latest figures from industry analyst Gartner. During the second quarter of 2003, Palm claimed 38 per cent of the market, up from 30.5 per cent for the same quarter last year, while the share for fellow Palm OS licensee Sony, maker of the Clié range, rose slightly from 10.3 to 11 per cent. Palm OS devices as a whole accounted for 51.4 per cent. Among manufacturers employing Microsoft's Pocket PC platform, Hewlett-Packard leads the way with 15.3 per cent, much of which will be due to its acquisition of Compaq and the popular iPaq range. Dell, a recent entrant into the market with the Axim line-up, took 5.3 per cent.

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#1 By 3653 (63.162.177.143) at 8/19/2003 11:30:20 AM
in a similar tone...

segway now controls 1% of the automobile market.

comparing a zire to a pocketpc is becoming crazy.

#2 By 13030 (198.22.121.120) at 8/19/2003 2:06:59 PM
I'm also tired of folks comparing Pocket PCs to Palm devices. I've used several Pocket PCs and Palm devices over the years and simple put: MS just doesn't get it. After Palm started adding multimedia capabilities to their models, their market share started growing again at the expense of Pocket PC market share.

The PDA is either a toy or a task-oriented device. After all the geeks bought their toy, Pocket PC vendors had no one else to sell to. Palm understands the practicality of the device and its primary purpose--that is why their devices sell so well and continue to do so.

#3 By 3653 (63.162.177.143) at 8/19/2003 3:55:20 PM
"their market share started growing again at the expense of Pocket PC market share. "

show me.

#4 By 37 (66.82.20.150) at 8/19/2003 4:56:50 PM
#2

Your joking right?!? There are two people here at my work with new Palms that can't even come CLOSE to the capabilities of my new Tosihba E355 Windows Mobile 2003 PDA!

I would like to see your facts about Palm growing at the expense of PocketPC's. The Pocket PC market has been growing at the expense of PALM! lol

#5 By 13030 (198.22.121.120) at 8/19/2003 5:51:10 PM
#3 and #4:

http://www.theregister.co.uk/content/68/32386.html
Just go down to the "Worldwide PDA vendors" chart from the Gartner study. Crow anyone?

#4:

No, I'm not joking. I assume that you have used a comparable Palm device before making your statement about the superiority of the Toshiba E355. I used the Toshiba E335 (predecessor to the E355) for the last 6 months up until a couple of weeks ago when I switched to the Tungsten T2 (awesome!). Prior to the Toshiba, I alternated between a Palm m505 (primary) and an Audiovox Maestro. Before that I had a Palm IIIc and a Casio E-125, both of which were preceeded by a Palm IIIe and, prior to that, a Windows CE LG Electronics Phenom.

In my experience, the Palm devices are much better suited to the job of a PDA than the Pocket PC devices.

#6 By 3653 (209.149.57.116) at 8/19/2003 8:03:17 PM
ch... you said their market share started growing when they added multimedia features. Hmmm... but now you quote a single quarter as evidence. Even though their "gains" from the numbers you use... dont actually compare pre-multimedia with post-multimedia.

Let me help you out. Using Gartner again...

http://www3.gartner.com/5_about/press_releases/pr27jan2003a.jsp

Hmmm... it appears that Palms marketshare hasnt changed so much after all. They are stagnant around that 37-38% mark. And dont forget... your 2003 numbers INCLUDE handspring.

You can have your crow back. Tell me how it tastes.

#7 By 13030 (12.238.254.74) at 8/19/2003 11:24:51 PM
#6:

Well now, you always knew where to find the answers... ("show me?!?")

Palm devices include those made by Handspring and Sony, just like Pocket PC devices include those made by HP, Toshiba, Dell, etc. I was talking about the OS not the manufacturer. I don't see how you decided that I was talking about Palm Inc. only. (Well, actually I do, it's the only way to bolster your argument.)

The key difference is the quality and usability of the Palm OS over the Pocket PC. As I stated before, MS just doesn't get it and the trends over the last several years seem to demonstrate that. The Pocket PC gained market share but then leveled off. Palm lost market share initially then leveled off. Once the Pocket PC saturated its limited geek and vertical app markets, its sales flattened. The Palm OS-based Sony line, as well as the newer multimedia Palm line is bringing some users back to Palm devices (recent trend up which will slowly continue). The Pocket PC is losing ground to the multi-purpose, phone-based devices (primarily from cellular phone manufacturers) while the Palm devices are beginning to trend upward in market share. Is some of this speculative? Probably, but I'd put money on this (and I have over the last year)!

#8 By 3653 (209.149.57.116) at 8/20/2003 12:06:32 AM
ch - you ignore the fact that PocketPC revenue is gaining at a faster pace than Palm revenue. And PocketPC revenue is also higher than Palm revenue.

#9 By 37 (66.82.20.150) at 8/20/2003 9:02:11 AM
#5 ch,

I'm sorry, but my experience completely differs with yours, as do the palm users here at my work. They marvel at the features, power and compatibility of my PocketPC versus their Tungsten T2's (which are new!). And yes, I HAVE OWNED and USED a Palm m505. I also toyed around with the Tungsten, but it way short of the features as well as development opportunities and compability with Microsoft Outlook, Word, Excel, Access and Money. Not to mention support of RealPlayer in the Tungsten makes it rather useless considering the dominating support for Windows Media files out there. It's a good thing they support MP3. In addition, it's wireless connectivity out of the box allows it to support connections to a mobile phone only due to its limited software. Out of the box, I am connecting wifi in my Toshiba to the internet in any room I walk into that is wifi ready. Not to mention, my E355 came with 64mb and a rebate ticket for an additional 32mb card. 96mb of music, storage and more.

However, I can say that the Tungsten T2 is the best PALM I have ever seen and used.

#10 By 13030 (198.22.121.120) at 8/20/2003 10:01:59 AM
#8:

Revenue can be used as a red herring for financial analysis. A company can claim market share or growth based on increases in revenue when the real cause is the increase in unit pricing even if the units shipped is declining. (Pocket PCs have an average price of $442 versus $265 for Palm devices based on the Gartner study.)

The PDA market share (and mind share) is defined by penetration of units not dollars. Of course, this still ignores a number of contributing factors such as the impact of usability, branding, technical viability over time, compatibility, software catalog depth and breadth, and the embrace of the developer community.

#11 By 13030 (198.22.121.120) at 8/20/2003 10:37:46 AM
#9:

Funny you should mention Word and Excel compatibility. I have an experience to relate from when I was using the Palm m505 and Audiovox Maestro (Pocket PC 2002 OS). I had a Word document that contained contact info, positions, and pictures of my city council members. I thought it would be a great idea to have this on my Maestro for meetings, so I moved it to My Documents and synchronized with the Maestro. Whoops! It got butchered on the Pocket PC and since I had moved the original to the sync folder it was ruined as well. The layout was ruined and the picture quality greatly reduced. And I thought Word synchronization was seemless on the Pocket PC--simple documents always transferred OK and Excel usually performed well. I decided to try the same (after recreating the document) on the Palm m505 with the included Documents-to-Go software. Not only did the document remain unchanged, it looked exactly the same on the m505, and synchronized the changes back to the original without any surprises. I also found Excel sheets were handled just as well on the m505 with Documents-to-Go.

As far as the memory, not an issue unless you want to store MP3s or movies on your PDA (and I don't know a single serious user who does on any device). Interestingly, I run many of the same programs or types of programs on both devices and the 64MB Toshiba memory is about 25% utilized while the 32MB Palm Tungsten T2 is 16% utilized--same contacts, appointments, and so forth.

#12 By 37 (66.82.20.150) at 8/20/2003 11:36:20 AM
My experience again differs. I have had actual BOOKS in Word Document format that have transfered over, including pictures, TOC, Indexes, etc and the conversion was FLAWLESS. Needless to say, the conversion into the Palm was less than adequate, and unusable. The fault of you moving an original to your sync folder is not the problem of the PocketPC.

I am a serious user, and my PocketPC follows with me everywhere I go, including my business trips to Redmond, and my travel abroad (mapping with Mappoint as well as my GPS addon). The added music and video is yet another travel bonus that the Palm can't measure up to. Another reason the PocketPC has been a success.

#13 By 3653 (209.149.57.116) at 8/23/2003 5:17:06 AM
ch, even as PocketPC prices how lowered dramatically (must be 30-50% lower than a couple of years ago)... their revenue numbers still dominate palm. explanation? pocketpc is gaining on palm.

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