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Microsoft closing gap in PDA OS Market
Posted: 01-May-2004 [Source: Gartner]

[Palm OS market share slipped to 40.7 percent while Windows CE market share increased to 40.2 percent in Q1 2004.]

Stamford, Conn. -- Worldwide PDA shipments declined 4.6 percent in the first quarter of 2004, but the battle for the PDA operating system market has heated up as PalmSource and Microsoft were in a virtual tie in shipments in the first quarter of 2004, according to preliminary results from Gartner, Inc.

Palm OS shipments declined by 20.7 percent in the first quarter of 2004 compared with the same period last year. Palm OS market share slipped to 40.7 percent, while the Windows CE market share increased to 40.2 percent. Microsoft licensees have been steadily chipping away at the Palm OS lead since 2000, when Microsoft accounted for 11 percent of the PDA market.

Research in Motion experienced the strongest growth among PDA vendors as its shipments increased 352 percent. Its market share jumped to 14.8 percent in the first quarter of 2004, up from 3.1 percent in the first quarter of 2003.

On a regional basis, Western Europe exhibited the strongest growth rate, as PDA shipments increased 24 percent in the first quarter. The U.S. PDA market dropped 13 percent. The Asia/Pacific and Japan regions saw PDA shipments decrease 19 percent and 21 percent, respectively. Latin America PDA shipments were up 9 percent from the first quarter of 2003.

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