Frost & Sullivan Technology Makes Room for the Expansion of the PDA/PCC Market
MOUNTAIN VIEW, Calif. — March 8, 1999 — How would you like to have access to the world in the palm of your hand? New research predicts a swell in the number of Personal Computer Companions (PCCs) allowing users to store and access information on a handheld computer, thus enhancing the use of the desktop computer.
The latest study by Frost & Sullivan (www.frost.com), Introduction to Personal Computer Companions, predicts that PCCs will continue their popularity in horizontal applications, as well as increase their penetration rate in vertical markets such as medical and utility data collection industries.
The total PCC market is divided into two segments by product type: Personal Digital Assistant (PDA) and Handheld Personal Computer (HPC). The PCC market has tremendous growth potential due to the expected high adoption rate in corporate utility and vertical markets. The users will benefit from the low cost, convenient access to information from their internal databases, and the ability to run specialized applications to manipulate and manage computer data. Though the HPC has had a bit more exposure to the PCC market, its growth is eminent. In 1998, higher end HPCs showed some success over the lower end, and the total market revenues reached $522.6 million, an 81.8 percent rise over the year prior.
In the past, mobile data access was limited to the use of electronic organizers, that computerized tasks and contact information in a compact form factor. Unfortunately, data exchange and connectivity was cumbersome at best. The PCC answers the need for a connected organizer, yet has remained comfortably less functional than laptop computers. Previously, HPCs and PDAs were seen as being synonymous. This particular study is unique in that it points out the differences between the two, thus creating two markets, contrary to popular belief.
The PDA breaks down into two levels as well: Those offering simple, limited use, and those that are more complex and functional. Simple PDAs are less expandable and run on proprietary operating systems. Complex PDAs have various expandability slots, usually contain more memory and typically run on the Windows CE platform. Complex PDAs are anticipated to gain market share throughout the forecast period.
"The PCC market leaders are expected to be those who create connected handheld computers, thus appealing to the increasing fleets of road warriors and casual computer users alike" says Frost & Sullivan analyst Eduardo Guerra. Companies observing these trends and incorporating the Windows CE platform continue to drive this market. However, certain restraints including an inadequately addressed target market and the limited appeal of high-end PDA functionality will hinder market growth.
Despite these restraints, as PCCs continue to evolve, they will incorporate wireless solutions offering end users a total, mobile solution for those who value it. PCCs are expected to be the next wave of mobile means to access data as well as allow increased productivity among its users.
Frost & Sullivan presents Market Engineering awards each year to recognize companies that have made a positive contribution to the networking market. Winners are selected from an in depth analysis of the market competitors and interviews with those companies that make up the industry. This year the Market Engineering awards went to 3Com and Philips.
The 1998 Market Engineering Leadership award goes to 3Com for its introduction of the Palm III PDA, which focuses on connectivity and simplicity for the consumer. Because of these features, it has gained popularity and allowed employees increased mobility.
The 1998 Market Engineering Product Line Strategy award goes to Philips for demonstrating the best product line strategy in the marketplace. Philips has covered the customer base with a range of quality product lines to best suit market and customer needs, including the Nino PDA and Velo HPC mobile computing product line.
Participants in this report are: 3Com Corporation, Apple Computer Inc., Casio Inc. (subsidiary of Casio Computer Co., Ltd.), Compaq Computer Corp. (Internetworking Products Group), Digital Ocean Inc., Everex Systems Inc., Franklen Computer Systems Inc., Fujitsu Computer Products of America Inc., Geofox Inc. (subsidiary Geofox Ltd.), Hewlett-Packard Co., Hitachi Computer Products America, Inc., IBM (International Business Machines), Intermec Technologies Corp., LG Electronics U.S.A. Inc., Motorola Inc., NEC America Inc., Nokia Display Products Inc., Philips Consumer Electronics Co., Psion Incorporated, Sharp Electronics Corp., SONY Electronics Inc., Compaq Computer Corp., Fujitsu PC Corp., Hitachi Computer Products America, Inc., Hitachi Home Electronics (America) Inc., Motorola Computer Group, Motorola Inc., NEC Computer Systems, Oracle Corporation, PSI (Peripheral Systems, Inc.), Sharp Electronics Corp., Sharp Electronics Corp., Sprint Corporation and Sun Microsystems Inc.
Frost & Sullivan is an international marketing consulting training company that monitors the information technology industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series on online research publications such as the Multimedia Custom Subscription (www.frost.com/online), and to support industry participants with customized consulting needs.
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Report: 5845-71 Publication Date: March, 1999 Price: $2,950
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CONTACT: Kelly Lawson of Frost & Sullivan, 650-237-4329, or fax, 650-903-0915, or klawson@frost.com