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February 8, 2007

Handheld device market not-so-hot

The number of handheld devices shipped in 2006 plummeted 28.5 percent to 5.5 million compared with 2005, according to a recent report compiled by the Framingham research firm IDC.

The last three months of 2006 showed an even more severe drop in demand, with the number of units shipped sliding 35.9 percent.

Ramon Llamas, a research analyst with IDC, said that competition from smartphones and other high-end phones have cut into the market share of handheld devices like those produced by Palm and HP. Notebook computers are also getting into the action with embedded wireless technology becoming the standard.

Handheld device maker Mio was the only vendor to post both quarterly and full-year increases in shipments, edging out Dell to claim the number three position worldwide during the fourth quarter.

The number one and number two spots are occupied by Palm and HP, with 39.8 percent and 24.9 percent of the market respectively.

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