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[August 02, 2005]

Gartner Says Worldwide PDA Shipments Increased 32 Percent in the Second Quarter of 2005

STAMFORD, Conn. --(Business Wire)-- Aug. 2, 2005 -- Worldwide PDA shipments totaled 3.6 million units in the second quarter of 2005, a 32 percent increase from the same period last year, according to Gartner, Inc. The market is on pace to reach 15 million units shipped by the end of 2005, surpassing the record 13.2 million shipped in 2001.

"The steady growth in the PDA market can be attributed to a combination of factors," said Todd Kort, principal analyst in Gartner's Computing Platforms Worldwide group. "Wireless PDAs are increasingly seen as an adjunct or alternative to notebook computers, while favorable exchange rates have enabled more Europeans to purchase PDAs at an attractive price. These factors have aided in the recovery of the slumping PDA market of 2002-2004."

Research in Motion's BlackBerry shipments grew 64.7 percent in the second quarter, as the company was the No. 1 ranked vendor in worldwide PDA shipments (see Table 1). Dell and HP's market share continued to suffer, however, refreshes to their aging product lines are expected in the second half of 2005. Strong growth in shipments of T-Mobile's Sidekick II and Pocket PC Phone Edition devices pushed Dell out of the top 5 ranking. -0- *T Table 1 Worldwide: Preliminary PDA Vendor Shipment Estimates, 2Q05 (Units) ---------------------------------------------------------------------- 2Q05 2Q04 2Q05 Market 2Q04 Market 2Q05-2Q04 Company Shipments Share(%) Shipments Share(%) Growth(%) ---------------------------------------------------------------------- Research In Motion 840,000 23.2 510,000 18.6 64.7 Palm 642,020 17.8 913,202 33.2 -29.7 Hewlett-Packard 450,513 12.5 529,773 19.3 -15.0 Nokia 275,000 7.6 - 0.0 N/A T-Mobile 212,800 5.9 26,500 1.0 703.0 Others 1,195,275 33.1 769,325 28.0 55.4 Total 3,615,608 100.0 2,748,800 100.0 31.5 ---------------------------------------------------------------------- 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 (July 2005) *T

Microsoft maintained its position as the leading PDA operating system (OS) supplier, as it accounted for 46 percent of worldwide shipments in the second quarter of 2005 (see Table 2). In the battle for the second position, RIM extended its lead over Palm OS with 23.2 percent of the market. Palm OS PDA shipments declined 40.9 percent from a year ago. -0- *T Table 2 Worldwide: Preliminary PDA Vendor Shipment Estimates by Operating System, 2Q05 ---------------------------------------------------------------------- 2Q05 2Q04 2Q05 Market 2Q04 Market 2Q05-2Q04 Company Shipments Share(%) Shipments Share(%) Growth(%) ---------------------------------------------------------------------- Windows CE 1,653,638 45.7 1,006,923 36.6 64.2 Research In Motion 840,000 23.2 510,000 18.6 64.7 Palm OS 678,570 18.8 1,147,667 41.8 -40.9 Symbian 275,000 7.6 - 0.0 N/A Linux 28,000 0.8 27,500 1.0 1.8 Others 140,000 3.9 56,710 2.1 147.6 Total 3,615,608 100.0 2,748,800 100.0 31.5 ---------------------------------------------------------------------- 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 (July 2005) *T

The Western European PDA market grew 94 percent to 1.3 million units in the second quarter of 2005. Western Europe accounted for 37 percent of worldwide shipments, up from 25 percent a year ago. PDA shipments in the United States totaled 1.4 million units, a 1.3 percent increase. The stagnant U.S. market is the result of the continuing decline in Palm OS PDA shipments, and aging product lines among Microsoft licensees. PDA shipments in Asia/Pacific grew 24.7 percent with approximately 402,000 unit shipments.

Gartner defines a PDA as a data-centric handheld computer weighing less than one pound that is primarily designed for use with both hands. These devices use an open market operating system supported by third-party applications that can be added into the device by end users. They offer instant on/off capability and synchronization of files with a PC. A PDA may offer WAN support for voice, but these are data-first, voice-second devices.

Additional information is available in the Gartner report "PDA Market Continues Rapid Growth, Up 32% in 2Q05." The report is available on Gartner's Web site at www.gartner.com/DisplayDocument?ref=g_search&id=483992.

About Gartner

Gartner, Inc. (NYSE: IT) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has over 3,900 associates, including more than 1,100 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.

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