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Nokia a Serious Contender in Data-Centric Market, Finds IDC

Announcement posted by IDC 06 Oct 2006

IDC has recently released the final results for the Australian smart handheld device market for the second quarter of 2006.
IDC findings reveal that the market posted strong growth in the second quarter of 2006, with overall shipments increasing almost 10% from the preceding quarter. The converged device category was the sole driver for the robust performance of the smart handheld device market in 2Q06. PDA or pen-based devices continued to decline from a unit shipments perspective by almost 30% compared to the previous quarter. This accounted for a mere 5% of the entire smart handheld device market.
In addition, IDC has found the following key highlights of the 2Q 2006 smart handheld device market:
1) 7 in Ten Converged Devices were Voice-Centric in 2Q06: Voice-centric devices continued to dominate the converged device space driven by Nokia's launch of multiple devices including the n70, n71 and n80 models. It should be noted that most of these devices are sold into the volume-consumer market, positioned as high-end mobile handsets with a strong focus on multimedia features such as imaging and music.
2) Nokia Enters Data-Centric Market: Nokia entered the data-centric market in 2Q06, with the launch of its e61 model. The e61 powered by the Symbian S60 operating system, features a full QWERTY keyboard and is being referred to as Nokia's version of the Treo or Blackberry. It is clearly evident that the e61 is aimed at its competition and Nokia is now a huge contender in a domain traditionally owned by Microsoft-powered and Blackberry devices.
3) Price Primary Purchase Decision Criteria for PDAs: The waning demand for PDA devices continues to be restricted to the low-to-mid range devices, catering to the more price-sensitive end-users seeking basic and no-frills Personal Information Management (PIM) device. Price continues to be a critical factor in the PDA market and low-end devices continue to flourish, despite recent attempts by vendors to reinvigorate this market by introducing multimedia features and even GPS.
"In terms of vendor rankings for the total smart handheld device market, Nokia maintained its supremacy with 77.8% share while RIM finished in second spot with 5.7%. Meanwhile, i -mate managed to expand its shipments by 18% sequentially compared to 1Q06, to occupy the third place with 5.3% share. Rounding out the Top 5 were HP and O2, with 4.6% and 2.9% market share respectively," noted Mercie Clement, Market Analyst, PC Hardware.
Top five vendors (total smart handheld device market):
# Nokia 77.9 %
# RIM 5.7%
# i-mate 5.3%
# HP 4.6%
# O2 2.9%
# Others 3.6%
If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email gclarke@idc.com or phone 02 9925 2226.
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