Home  › Marketing › Strategies

Converged Devices Lead Mobile Demand

  |  November 1, 2004   |  Comments

Handheld shipments were lower overall in Q3, but demand for converged devices is healthy, and growing.

The market for handheld and wireless devices is current a bit of mixed bag. A series of research reports from IDC attempt to gauge where the various markets are, and what may be driving them.

The global handheld market recently reported its third successive quarter of year over year decline. IDC's Worldwide Handheld Qview found shipments decreased 8.7 percent year over year in Q3 20004 to 2.1 million units. The current market leader, palmOne saw its market share decline to 34.7 percent, a 6.9 percent fall. The drop was precipitated by a 20.3 percent sequential decline, making it a 12.7 percent year over year decline. Palm's loss is HP's gain. That company increased its market share by 6.7 percent over the previous quarter.

Handheld Rankings
Rank Vendor 3Q 2004
3Q 2004
Market Share
1 palmOne 736,481 34.7%
2 Hewlett-Packard 648,975 30.6%
3 Dell 188,200 8.9%
4 MiTAC 68,500 3.2%
5 Sony 44,192 2.1%
Other 436,644 20.6%
Total 2,122,992 100.0%
Source: IDC, October 27, 2004

In Western Europe, the mobile device market (which includes PDAs and smartphones) actually grew 38 percent in the most recent quarter. Over 1.8 million units shipped in Q3 2004, up from 1.3 million units in the same period a year ago. In this market, the survey found the standalone PDA market is growing, though only at a meager 4 percent. European drivers appear to be RIM Blackberry sales and Nokia Series 60-smartphones.

The largest reported growth in Western Europe is for converged devices, which led mobile device shipments with a robust 60 percent year over year growth.

IDC Western European Mobile
Device Shipments, 3Q04
Form factor 3Q04 Share 3Q03 Share Growth
Handheld devices 544,750 30% 524,015 39% 4%
Converged devices 1,301,340 70% 811,470 61% 60%
Total mobile devices 1,846,090 100% 1,335,485 100% 38%
Source: Source: IDC, 2004

In another study, IDC found the "early majority" adopters of mobile devices aren't interested in the same features that drove early adopters of the technology. A survey of 1,800 early majority adopters found 25 percent of respondents utilized WiFi hotspot access at least 10 times in the past 12 months.

Carrying multiple devices is a commonality among the survey base. Over half carry three mobile devices (mobile phone, PDA and laptop). Almost 66 percent carry both a PDA and a mobile phone. That said, IDC's survey of early majority adopters did see a clear desire expressed by respondents to minimize their device load. Over half indicate a level of interest in acquiring a converged device that would handle the functionality of multiple devices, such as phone, email and PDA, into a single mobile unit.

In IDC's analysis, early adopters are preoccupied with style, status and novelty. The early majority, consumers more comfortable waiting until a technology becomes established before purchasing, is more interested productivity and safety.

"When comparing various mobile phone features, attributes like battery life and screen display quality were rated as more important criteria than factors such as one-handed operation, multimedia capability, and brand," said Dana Thorat, senior research analyst at IDC, in a statement. "Early majority users are more deliberate in their mobility solution decisions, and are clearly focused on proven applications, such as email, that enhance their productivity and add convenience to their lives.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!


COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!




Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.


    Information currently unavailable


    • Creative Project Manager
      Creative Project Manager (Agora Inc. ) - BaltimoreThe Creative Project Manager of PubSVS will work directly with the IRIS team and will be responsible...
    • Digital Marketing Associate
      Digital Marketing Associate (Connections Media) - Washington, DCConnections Media, LLC, a Washington, DC-based digital agency providing strategy...
    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...