PDA market still evolving.

While shipments declined in 2003, personal digital assistants (PDAs) have continued their evolution into multimedia and business data devices, reports In-Stat/MDR (Scottsdale, AZ, www.instat.com). The high-tech market research firm finds that most companies in this industry are hoping for a rebound into positive growth, with manufacturers still focusing on growing the market by attracting new users and convincing current users to upgrade.

As the economy improves and IT spending recovers, PDA manufacturers are also hoping for increased shipments to corporations. While growth will only be in the single digits, PDA shipments are forecasted to have a 6.5% compound annual growth rate (CAGR) over the 2003 to 2008 period, with shipments forecasted to reach 10.8 million units in 2004.

"Even with poor economic conditions, there was no shortage of PDA product introductions in 2003," says Cindy McCurley, an industry analyst with In-Stat/MDR. "PPC devices got smaller, prices continued to decline and there was greater availability of products with integrated Bluetooth and Wi-Fi from all manufacturers."

According to the report, palmOne still led in unit shipments, with nearly twice the market share of Hewlett Packard (HP), its closest rival. Also, three distinct tiers of products emerged: low-end, middle-range and high-end devices, with most companies offering devices with a range of functionality and prices.