Increased demand for wireless connectivity is expected to boost sales of palmtop and handheld PCs over the next few years.
According to a new report by Cahners In-Stat Group, sales of mobile computing devices will rise from 4.8 million last year to 16.7 million in 2004. Palmtops, which use an electronic pen to input information, are expected to take a considerable lead over the larger, keyboard-based handheld PCs. In-Stat predicts that palmtop sales will reach 15.9 million in 2004, while sales of handheld PCs will fall from 1.2 million in 1999 to 810,000 in 2004. Palm, which produces both hardware and software, is still the leading player in the palmtop market.
As CNET reported this week, however, the introduction of Microsoft’s latest palmtop operating system, along with new devices from Compaq, Hewlett-Packard, and Casio may pose a serious challenge to Palm’s dominance. IDC predicts that by 2004, Microsoft will have a market share of almost 40 percent, while Palm’s share will drop to 51 percent.
