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Daily News

PDA Market Faces Steep Decline
Mar 3, 2005
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The traditional PDA is heading for significant declines in sales, according to recent research findings from In-Stat.

Unit shipments of PDAs reached only 8.7 million units in 2004, down from 10 million in 2003, the research firm reports. The outlook for upcoming years is not good, either, as the PDA market will have a negative Compound Annual Growth Rate (CAGR) of -21.5 percent during the 2004-2009 period.

By 2009, In-Stat expects that this segment will be composed of devices designed for specific vertical markets and low-end products. The market decline will occur as users switch to other products, such as smart phones and portable media players, a natural evolution of the category.

In-Stat has also found that:

  • Manufacturers will introduce more corporate-focused and niche-focused devices, such as those incorporating GPS, this year.
  • Intel's XScale processors continue to be the most popular; however, most manufacturers are using processors from several vendors across their product lines.
  • Bluetooth, Wi-Fi, and cellular wireless devices will be offered by more traditional PDA vendors as they look to compete in the smart phone market.
  • By the end of 2005, there will be significant price reductions and more stylishly designed smart phones, thus attracting more users from PDAs to this category.

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