PORT WASHINGTON, NEW YORK, November 18, 1999 - Chances are you or someone you know has a new assistant -- not a girl or a guy Friday, but a small computer that fits into your palm and helps keep track of contacts, appointments and the myriad details of business and personal life. According to leading marketing information provider NPD INTELECT, nearly 2.5 million handheld personal computing devices have been sold for the year through September, a 62% increase over the same period last year. These gains alone put the category among the computer industry’s top performers. And with the holidays around the corner, year-end results should be even more robust.
According to NPD INTELECT, sales of handheld devices through September totaled more than $321 million. Personal digital assistants (PDAs), the priciest category in the handheld family, garnered 80% of dollar sales. Lower-priced personal organizers captured 12% of sales. And the least expensive of the handheld devices, reference data banks, captured 8% of sales.
In a category spanning a range of price points - from PDAs ringing in at $300 and over to data banks typically priced at under $50 -- NPD INTELECT reports sales are brisk across the board. PDA sales are up 58% in unit terms through September. Personal organizer sales are up 51%. And sales of reference data banks are ahead more than 85%.
Revenue increases, while healthy, have not kept pace with unit sales growth. NPD INTELECT data show revenue gains of approximately 33% across all categories for the year to date. The healthiest category in terms of revenue gains is the lowest priced, data banks, which have realized 72% gains. PDAs saw revenue gains of 38%. Revenues for personal organizers were flat.
Behind the lower revenue gains are falling prices. Prices for the low-cost organizers are down from an average of $53 in August of 1998 to $37 in August of 1999, keeping revenue increases in check. The higher priced PDAs have dropped from an average of $397 to $345 over the same period.
"Strong sales and more accessible price points definitely bode well for the handheld industry as we head into peak holiday buying season," comments NPD INTELECT Divisional Vice President for Technology Products Sima Vasa. "The idea of an ultra-portable appliance to keep phone numbers, notes and schedules continues to penetrate our society. Sales for the year could reach beyond $450 million."
NPD INTELECT market share data show key players differ by class of product. The high end is dominated by 3COM's Palm Pilot line, which had a 77% market share in September. At the low end, Royal Business has taken a large bite out of the business of former market leader Sharp. Now just barely in the lead, Royal Business had a 38% market share in September to Sharp’s 37%. 3COM does not compete in the low-end market.
| Top 5 Personal Digital Assistant Vendors | ||
| Sept. 98 | Sept. 99 | |
| 3Com | 75.4% | 77.9% |
| Casio | 3.5% | 9.5% |
| Hewlett Packard | 5.7% | 3.4% |
| Royal Business | 0% | 3% |
| IBM | 2.5% | 2.3% |
| Top 5 Personal Organizer Venders | ||
| Sept. 98 | Sept. 99 | |
| Royal Business | 6.4% | 38.3% |
| Sharp | 61% | 36.8% |
| Franklin | 10.6% | 15.9% |
| Casio | 11.4% | 7.9% |
| Texas Instruments | 5.8% | .5% |
About NPD INTELECT
NPD INTELECT Market Tracking is a leading provider of sales tracking services for manufacturers and retailers of consumer electronics, home appliances, information technology and imaging products. A joint venture of two leading marketing information providers, The NPD Group, Inc. and GfK AG, NPD INTELECT offers subscribers data rich and convergence-ready information with global reach. Data are collected from comprehensive panels representing each industry’s key distribution channels around the world. The company’s clients include most of the manufacturers and retailers in each industry NPD INTELECT tracks.
NPD INTELECT is currently teaming with International Data Corp. to produce a new research product designed to analyze sell-through activity of smart handheld devices in the U.S. marketplace. Called IDC/NPD INTELECT Smart Handheld SellView, the product combines NPD INTELECT sell-through information with IDC’s expertise in competitive, technology, market and end-user analysis in the smart handheld arena.