Future PDA Smart Phone Giant?

US : The recent merger announcement of Palm Inc. and Handspring Inc. further reinforces the growth expected in the smart phone segment for wireless handsets. While currently representing only a slim minority of the overall handset market, strong compounded growth of 47% is expected through 2008. So-called "PDA smart phone" shipments will nearly double in 2004 and show continued growth, as users migrate to these devices. Subscribers will be drawn to smart phones for the enhanced experiences these devices offer for enterprise power-users and consumers alike.

While neither company is a top-10 handset vendor, this deal provides a solid foundation for the company to emerge as a leading supplier of handsets by way of the smart phone segment. "By recognizing the growth ahead in the smart phone market, the pair is poised to hedge the comparatively sluggish growth expected in the PDA market, a path previously chosen by Handspring," says Edward Rerisi, Director of Research at research firm Allied Business Intelligence (ABI).

The combined entity will maintain the three established brands in a combined portfolio: Zire, Tungsten and Treo. These brands form a key launching pad to growing the smart phone market as a whole, as well as the company's share of that market. "To fully realize our growth expectations, vendors need to deploy user-friendly devices and properly communicate their benefits to consumers. Historically, Palm and Handspring have trumped their competitors in this regard," adds Mr. Rerisi.

Should device functionality meet consumers' needs, ABI projects smart phone shipments to reach 31.6 million in 2008. "An ancillary benefit of increased adoption of smart phones is higher data usage, a key ARPU driver. Operators embracing these devices will likely benefit, should Palm and Handspring continue their track record in device design," observes ABI wireless analyst Kenil Vora. The market research firm defines PDA smart phones as cellular handsets with advanced input functionality through a keyboard or stylus allowing users to manage a broad range of applications.

Full analysis of the wireless handset market, including converged Wi-Fi and cellular devices, is incorporated in ABI's portfolio of wireless research services.

TODAY'S PRESS RELEASES

Alphamosaic, the industry leader in video for the mobile world, has announced that it has secured $12 million in a Series B financing round which will be used to further fund the expansion of the product portfolio and its worldwide operations.

The recent merger announcement of Palm Inc. and Handspring Inc. further reinforces the growth expected in the smart phone segment for wireless handsets. While currently representing only a slim minority of the overall handset market, strong compounded growth of 47% is expected through 2008.

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Sendo today confirmed that it has initiated legal proceedings in the High Court of Justice in London against the mobile phone operator Orange in the United Kingdom.

Siemens Information and Infineon Technologies announced that Siemens has chosen Infineon’s S-GOLD Family for their next generation of multimedia oriented GPRS and EDGE handsets.

As the brain of most handheld devices and smart phones, PALM OS® has enabled the mobile-minded to extend their life well beyond the desktop. Now, with the new Wrist PDA, you can take that life even further.