• Palm -- Palm's market share declined from 41.8% in 2Q03 to 35.6% this quarter due to a slower than expected end-of-summer sales of current models. However, Palm launched three new devices at the beginning of 4Q03, the Zire 21, Tungsten E, and Tungsten T3, all of which are poised to build on the strong sales of their predecessors.
  
  
• Hewlett-Packard -- HP experienced a leap in market share from 17.6% in 2Q03 to 24.5% this quarter on the strength of five new devices launched in June as well as the August introduction of the new h1935. With this advancement, HP significantly narrows the gap between itself and market leader Palm and looks to continue its gains during the fourth quarter.
  
  
• Sony -- Despite a slight increase in sales, Sony's market share declined from 11.9% in 2Q03 to 11.5% in 3Q03 largely due to increasing shipments from HP.
  
  
• Dell -- Dell experienced solid growth in the Asia/Pacific market, but this gain was offset by slower sales in Europe and an aging Axim product line. Dell's recent introduction of the Axim X3 and Axim X3i, however, should once again spur sales in 4Q03.
  
  
• Toshiba -- With the introduction of the e350 and the e750 in late June, Toshiba maintained its position as the number 5 vendor in the handheld market and experienced a slight gain in market share from 3.5% in 2Q03 to 3.6% this quarter.

    Rank     Vendor             3Q 2003 Shipments    3Q 2003 Market Share

    1         Palm                843,149                 35.6%
    2         Hewlett-Packard     581,000                 24.5%
    3         Sony                272,607                 11.5%
    4         Dell                135,600                  5.7%
    5         Toshiba              86,318                  3.6%

              Other               450,059                 19.0%

              Total             2,368,733                100.0%

• Vendor shipments are branded shipments and exclude OEM sales for all vendors.
  
• Handheld devices are pocket-sized, either pen or keypad-centric, and are capable of synchronizing with desktop or laptop computers. Handheld devices are designed to access and manage data including office documents, multimedia, and games.
  
• Handheld devices do not include telephony but may include wireless capabilities which enable Internet access and text communication. These devices feature evolved operating systems or application environments, such as the Palm OS, Pocket PC, Windows CE, Handheld PC 2000, Linux or proprietary solutions and have the ability to download and run applications and store user data beyond their required PIM capabilities.

• IDC study confirms demise of the "unconnected PDA"
  
• Worldwide handheld sales continue decline
  
• IDC notes 400% year-over-year smartphone market growth
  
• Report: Connected PDAs to outnumber traditional PDAs by 2006
  
• Perception of functionality key to PDA market growth
  
• Rugged PDAs/wearables market to grow at 25-35% CAGR