Worldwide Handheld Market Continues Decline
Following a holiday quarter in which worldwide shipments of handheld devices topped two million units, the worldwide market for handheld devices began 2006 with its ninth consecutive quarter of year-over-year decline. According to IDC's Worldwide Handheld QView report, worldwide shipments of handheld devices totaled 1.5 million units, down 22.3% from the same quarter a year ago.
Despite the incorporation of features like Bluetooth, Wi-Fi, expandable memory, and integrated GPS solutions, the handheld market continues to shrink. Many of these same features can be found on mobile phones, and the inclusion of telephony extends the usability of mobile phones beyond that of handheld devices. Still, vendors continue to search for ways to keep their products viable within this space by appealing to first-time and core users, or even joining the converged mobile device (i.e. smartphone) space altogether.
"A decline in shipments following the holiday quarter is expected of mature markets, and the handheld devices market is no different. After nine consecutive quarters of year-over-year decline, many are wondering how long this trend will continue, and whether the market will see a reverse," says Ramon Llamas, research analyst with IDC's Mobile Markets team. "IDC believes that the market will eventually hit a size where the rate of year-over-year decline will slow to a sustainable level. That size has yet to be determined, but will be sustained by the core users of handheld devices as well as the enhancements found on these devices."
Vendor Highlights
- Palm, Inc Palm started off 2006 in much the same way it ended 2005: as the worldwide leader in the handheld market. With shipment volumes 23.3% lower than a year ago, the U.S.-based company was buoyed by the success of the Palm Tungsten E2 and the Palm Z22 handheld. At the same time, shipments of Palm's line of Treo smartphones continue to increase, surpassing shipments of its handheld devices.
- Hewlett Packard Also feeling the effects of the declining market, HP's handheld device shipments decreased 30.3% year over year. With both its professional and home office handheld device lines running on Windows 5.0, HP remains the worldwide leader in Microsoft-powered handheld devices. The company's converged mobile device line also had a year-over-year decrease, but new devices are expected to ship later this year.
- Dell Despite a decline of 33.8% in shipments
from a year ago, the U.S.-based company
- Acer Of all the vendors in the top five, Acer had the smallest year-over-year decline at 10.8%, staying ahead of fifth place Mio. The company's shipments within Asia/Pacific remained steady while shipments into Europe declined slightly. The company's latest device, the n300, joins a portfolio of Acer's devices that include expandable memory, Bluetooth, and WiFi features.
- Mio Rounding out the top five is Mio, whose shipment volumes increased enough in Europe and Asia to post a healthy year-over-year increase and to edge out Medion for the final spot. Mio was the only vendor within the top five to record a year-over-year increase at an impressive 84.4%. The company continued to offer a suite of handheld devices targeted at different segments of the market, featuring Bluetooth, WiFi, and imaging capability.
Vendor |
Q1 2006 Shipments |
Q1 2006 Market Share |
Q1 2005 Shipments |
Q1 2005 Market Share |
1Q06/1Q05 |
Palm |
475,000 |
32.2% |
619,253 |
32.6% |
-23.3% |
HP |
346,000 |
23.5% |
496,755 |
26.2% |
-30.3% |
Dell |
143,100 |
9.7% |
216,229 |
11.4% |
-33.8% |
Acer |
110,688 |
7.5% |
124,084 |
6.5% |
-10.8% |
Mio |
104,609 |
7.1% |
56,720 |
3.0% |
84.4% |
Others |
294,849 |
20.0% |
385,482 |
20.3% |
-23.5% |
TOTAL |
1,474,246 |
100.0% |
1,898,523 |
100.0% |
-22.3% |
Source: IDC Worldwide Handheld QView, April 26, 2006
Notes:
- Vendor shipments are branded shipments and exclude OEM sales for all vendors.
- Handheld devices are pocket-sized, either pen or keypad-centric, and are capable of synchronizing with desktop or laptop computers. Handheld devices are designed to access and manage data including office documents, multimedia, and games.
- Handheld devices do not include telephony but may include wireless capabilities that enable Internet access and text communication. These devices feature evolved operating systems or applications environments such as the Palm OS, Windows Mobile Pocket PC, Linux, or other proprietary platforms with the ability to download, run applications, and store user data beyond their required PIM capabilities.
Thanks to Craig Bowers for the tip.
Article Comments
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RE: How about they're just too expensive?
RE: How about they're just too expensive?
True, the T|T/T|C were $400-$500 but they also featured (arguably) certain "high end" features currently unavailable on 'flagship' Palms such as metal casings, vibrating alarms, charge LEDs and cradles in the box.
Perhaps a better comparison is LifeDrive to T|T (both launched at $500 before quickly dropping)
I personally feel the "sweet spot" for a basic PDA is $100, with a "feature" PDA coming in at ~$200ish and a "high end" PDA topping out around $300. Coincidentially, Palm has units at all of those price points.
I actually think a decently marketed & distributed mono PDA in the ~$50-$60 area would STILL do decently well at places like Wal-Mart etc. If Royal/Sharp/Casio organizers & digital diaries can still sell well with 48k of RAM then an 8mb "expandable" (software, not in a memory sense) Palm Zire 21 type unit would clean up IMO. Bundling it with some kind of graphing calculator type app would help sell it to students as well.
Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX
RE: How about they're just too expensive?
Yeah, but there are a few things the current models have that the older ones lacked, like WiFi, gobs of memory, uh...
Um...
Okay, gimme a minute here...
Oh, NVFS. We have NVFS. (Waits for the inevitable person questioning whether or not that's a feature.)
RE: How about they're just too expensive?
- Big cuts in prices.
- NVFS
- Better sound chip.
- Better stronger speaker.
- Less screen flaws, TFT screens (still, we need OLED!)
- WiFi
- BT
- 128 Meg
- Better battery life.
- Better Intel Bulverde chips.
- E2/T5/TX frame builds are very strong and good quality.
- Higher capacity SD slots.
RE: How about they're just too expensive?
Something to keep in mind is that NVFS/NAND memory is actually CHEAPER to purchase that good ol' flash DRAM that the T3 and earlier used.
I'll point everyone to an 18-month old post by the dearly departed TVOR outlining the (dubious at best) "benefits" of NVFS:
http://www.palminfocenter.com/comments/7271/#100402
In short, I was glad ONCE to have NVFS in my TX when it locked up and ran down the battery while it was in my travel bag.
Of course, it had locked up doing some very mundane operation (opening an email in VM) that never would have froze up my T3 or T|C doing a similar task. So there's a double edged sword if there ever was one....
NVFS has probably saved my butt once......yet it locks up my TX at unexpected moments and/or requires reset at least 1x weekly. I run a "leaner'n meaner" software load on the TX than I did on the T3 and still have more quirks. It's better than the T5 or LD were but still not to the level of the old volatile DRAM-based Palms.
Sluggish performance is another irritation of NVFS. I've even encountered semi-embarressing delays as the TX lagged incessanetly while I was trying to look up an appointment or a telephone number with a coworker peering over my shoulder.
While it seems inevitable that NVFS is the "wave" of the future for no reason other than sheer economic factors, it's certainly not the holy grail of mobile computing. I'll also wager that NVFS is more approproiate in a smartphone that's likely to have its battery completely run down than it is in a traditional PDA or "mobile manager" (ahem) where units are usually recharged on a more frequent basis & used less intensively.
Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX
RE: How about they're just too expensive?
"Do you know the difference between an error and a mistake? Anyone can make an error, but that error doesn't become a mistake until you refuse to correct it."
-Grand Admiral Thrawn
the secret to enjoying your job is to have a hobby that's even worse
My PDAs: Visor --> Visor Neo (blue) --> Zire 71 --> Tungsten T3 (with 4 of 6 screws still remaining) ~?~> zodiac 2?
Handheld shipments
PALM (the company I love and hate at the same time), HOW COME the TX is not selling more? :( The device is a joy to use and its relatively inexpensive. I simply dont understand.
Z22 selling well is a big surprise to me. Why the God doesnt put a 320x320 on that and call it Z23? 160x160 is no good.
DELL, who cares, their X51v is just as slow as the HPs, the battery is nothing more than a farce, the narrow viewing angles of the screen are unacceptable and the buttons suck like on the HP.
Palm is the king and Im saddened to see that sales are going down instead of up.
Anyways, Palm can count on me as one of their core buyers.
Lets see a super LifeDrive and a boosted TX with Palm OS II. MAKE THE TX2 DE DEFACTO MOBILE MOVIE PLAYER ON THE MARKET with a nice OLED screen. Come on Palm, now is the time! HP is letting its guard down and they are weak now. Now is the time to kick them while they are down (such a cruel world... sigh...)
RE: Handheld shipments
Think such crazy things is akin to saying in 1990: "People at home simply don't need computers. Sales are going to plateau."
Handhelds will be huge $ makers. Its all about refining a few more little things in designs and performance, then you will see those new devices trigger landslide sales. The TX design is getting VERY close to that "market triggering threshold".
If Palm had been more attentive to what people like me have been saying for years, the iPOD market would be theirs!
Instead, we every child, teen and adult running around with them stupif single task iPOD when they could pay about the same with Palm and have a full computer with 20 000 programs. Ludicrous.
RE: Handheld shipments
== PALM gained marketshare in worldwide handheld shipments!
RE: Handheld shipments
Forget the comment above - instead PALm will say....
RE: Handheld shipments
Z22 has an excellent form factor (nice and small) plus it has the ipod cute factor going for it as well. This model is a winner. It's replacement with 320x320 OLED @ $99 would be the true killer Palm...
RE: Handheld shipments
Much more crucial to the $100 and below market are the VERY critical SD slot & headphone jack (and of course the requisite FAT32 driver for that SD slot).
Take the SD slot & headphone jack of the Zire 31, give it the Z22's NVFS, formfactor, newer OS and pricetag and you have an outstanding PDA. You might even see Treo owners buying them on a whim just to have a spare/backup unit and something to "play" with.
There's plenty of life left in the PDA market...it's just in the <$200 impulse buy realm of blister packed units at Wal-Mart/Target with basic feature sets.
Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX
RE: Handheld shipments
PALM (the company I love and hate at the same time), HOW COME the TX is not selling more? :( The device is a joy to use and its relatively inexpensive. I simply dont understand.
AFAIK, it's still selling at a steady rate. For example, on the Cnet forums, ppl ask what handheld they should get. If it's a high end Palm, many of the moderators will suggest a T|X with a LD behind it.
Z22 selling well is a big surprise to me. Why the God doesnt put a 320x320 on that and call it Z23? 160x160 is no good.
hkklife already beat me to the punchline. Hi-res screens are more expensive to produce and they wouldn't be able to maintain (not a $100, but) a $99 MSRP. Anything even at just tens $ more just doesn't have the same warm, fuzzy inexpensive feeling. Besides, keep in mind you're thinking from our perspective. You'd have to PAY ME real well to use a low-res device, but soccer moms and beginners won't really mind it. They'd either rather save the $$ or won't even notice it in the first place since they won't really use the hi-res one. If they do want a hi-res screen, they either would'v gotten that in the first place or return and exchange for said screen resolution.
It's like I always say, the z22 and z31 may be good beginner PDAs, but the T|E and T|E2 are _great_ beginner PDAs.
It's like with desktops. My dad uses a 'crummy' 15" CRT screen. He's so cheap, he would rather stick with that than spend the $100+ for even an LCD or CRT monitor that's noticeably bigger. I have a nice 18" LCD. At the opposite end of the extreme are people who can't work with anything less than dual widescreen LCDs. People need to find what they're good with and go with it.
DELL, who cares, their X51v is just as slow as the HPs, the battery is nothing more than a farce, the narrow viewing angles of the screen are unacceptable and the buttons suck like on the HP.
ppl are also in it for the graphics accelorator, VGA, replaceablle batteries, persistent memory storage, and other stuff not mentioned. It ain't just the stuff you mentioned. Of course not ALL of these are necessarily good reasons, as some of us indeed are still with pOS.
"Do you know the difference between an error and a mistake? Anyone can make an error, but that error doesn't become a mistake until you refuse to correct it."
-Grand Admiral Thrawn
the secret to enjoying your job is to have a hobby that's even worse
My PDAs: Visor --> Visor Neo (blue) --> Zire 71 --> Tungsten T3 (with 4 of 6 screws still remaining) ~?~> zodiac 2?
And another thing!
OLED = Stunning visual experience, wide angles, faster refresh, thinner Palms, lower batt consumption, etc!.
ITS ALL ABOUT A VISUAL EXPERIENCE. That will make new people fall in love with Palm. When photos and movies are ultra clear from all angles, thats when people will no longer poo-poo handhelds.
For the love of God, please, someone act on this.
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
OLED
Or some equivalend.
RE: And another thing!
Two important reasons why OLEDs are only used as secondary displays on a few phones:
1) higher costs than LCDs
2) OLEDs cannot support high resolutions (yet)
RE: And another thing!
Palm is still somewhat an American company and it would be nice to see them give Japanese companies like Sony a lesson in making cutting edge technology for a change.
Where are the good old days when America was innovator and not the following slackers?
As for price, either make a handheld available in 2 formats, 1 with transflective and another, more expensive, with OLED. I know I for one, as a huge fan of mobile technology would buy it.
The TX is significantly less expensive than the T5. There is room to increase the cost a bit to put in an OLED screen.
On such small screens, how can visual clarity not be a critical area of improvement, and how can it not become essential to consumers?
Remember the days when reflective screens were "OK" and then everyone was rushing for transflective screens?
MP3, movies and pictures will become more and more important in the mobile experience. Making it easy to quickly port them from a laptop to a handheld, and being able to enjoy them on the Palm without have to carefully focus the device in a very tight and precice line of sight will be a key factor in the success of any future mobile device maker.
RE: And another thing!
RE: And another thing!
Didn't even notice the typos till you brought it up. I don't feel like going back to that post to check, so I'll just take your word for it :)
"Do you know the difference between an error and a mistake? Anyone can make an error, but that error doesn't become a mistake until you refuse to correct it."
-Grand Admiral Thrawn
the secret to enjoying your job is to have a hobby that's even worse
My PDAs: Visor --> Visor Neo (blue) --> Zire 71 --> Tungsten T3 (with 4 of 6 screws still remaining) ~?~> zodiac 2?
Does Palm's numbers include Treo sales?
RE: Does Palm's numbers include Treo sales?
-Ryan
RE: Does Palm's numbers include Treo sales?
Just because my "PDA" has a microphone and a wireless radio it's suddenly *NOT* a PDA? What's the defining factor- adding the microphone or adding the CDMA radio? It's rather ridiculous.
I haven't "stopped" buying PDAs, I just chose to buy one that has the ability to make phone calls and connect to the internet... If it were counted as a "cell phone," then (for the price and abilities) it should also get a vote as a PDA... because if the Treo didn't have the ability of a Treo - IE: PDA built-in, then Palm would still be selling me a PDA separately as they have for years.
This "market decline of PDAs" story seems to come up all the time on these user group sites, probably just to keep the conversations "fresh" when there's really nothing to report on the Palm front.
Did automobile sales suddenly "decline" after they introduced Automatic Transmissions or Radial Tires or built-in stereo or GPS? Hardly - they just expanded the capabilities of the automobile without changing the definition of the product.
Palm is a bit dense to keep distancing itself from it's PDA roots - there are a heck of a lot of "cell phone" manufacturers and operating systems out there to swallow them whole (cough700wsymbiancough). If the Treo wasn't built around a solid PDA organizer OS (Palm), they'd be selling about as well as the 700w and we'd all still just be using a separate PDA and a cell phone.
RE: Does Palm's numbers include Treo sales?
WAITAMINUTE!
No, I don't.
And you shouldn't either.
RE: Does Palm's numbers include Treo sales?
Just because my "PDA" has a microphone and a wireless radio it's suddenly *NOT* a PDA?
...
Did automobile sales suddenly "decline" after they introduced Automatic Transmissions or Radial Tires or built-in stereo or GPS?
I can just picture the arguments in 1900:
"Just because my carriage has an engine it's suddenly not a carriage? Did sales of carriages declined after they introduced pneumatic tyres or brakes?"
The point is that wireless/cellular radio adds functionality which can can change the very way you use that device.
Naturally, you can use such a device without the radio, just as you can use today's automobiles today as a horse buggy (may even have to in the future with the way oil prices are going up! :) )
It's time to accept that the majority of people prefer (smart)phones over handhelds, after all handhelds have been around in some shape or form since the 1980s (1970s if you include calculators).
No doubt they will be a market for handhelds (just as there's still a market for horse's carts and buggies) but the (smart)phone market is far far larger.
RE: Does Palm's numbers include Treo sales?
..Add a CDMA or GSM radio and suddenly it's NOT a PDA?
A "horseless carriage" is still a carriage, just changed the engine from horse to steam/electric/gas motor. My "smartphone" is still my PDA, just added a CDMA radio.
SeldomVisitor says
>"If "handhelds" are to include TREOs, then I want my Sony-Ericsson >phone to be included as well since it is programmable."
AFAIK "PDA" stands for "Personal Digital Assistant" not "Programmable..." Definitions vary (touchscreen or not, OS, functions/PIMs, etc), not knowing your Sony phone's capabilities I can't say much more.
My toaster is programmable too, but I don't consider it a PDA. However, it does make delicious toast.
The Inevitability of playing around with PDA/Smartphone Semantics
A "horseless carriage" is still a carriage, just changed the engine from horse to steam/electric/gas motor. My "smartphone" is still my PDA, just added a CDMA radio.
An airplane is a horseless carriage (it's got an engine and wheels) just added a pair of wings to it.
"PDA" stands for "Personal Digital Assistant"
My toaster is programmable too, but I don't consider it a PDA.
If your toaster has a microchip in it then it's a PDA: It's a digital assistant which assists you personally in the production of toast!
This is the danger of having such a broad definition of what a PDA, smartphone, horseless carriage etc is; a definition that covers such a wide range of objects that it becomes meaningless to the point of absurdity.
"It is commonly said, and more particularly by Lord Shaftesbury, that ridicule is the best test of truth".
Lord Chesterfield
Saturated Market?
RE: Saturated Market?
Somehow they need to find a way to get handhelds into the hands of people who have never tried such products before. The z22 seems like a good bet in terms of trying to expand the market. But the problem is that Palm seems to be devoting it's limited marketing budget to pushing Treos. (Makes sense, if the margin on Treos is greater.) But if they don't try harder to invrease the user base, all the stories about the dying handheld market will become self-fulfilling prophesies.
Now is the time for all good men to come to the aid of their profits.
RE: Saturated Market?
In fact, I wonder what the "profile" of a consistent handheld user is?
I bet the #1 hit is "student" followed by "someone who is travelling most of the time" with every other user a distant third.
For those who stay, usually, within a 50-mile radius of home a handheld is overkill.
[spoken as someone who bought a handheld and almost immediately stopped using it because the home and work computers available were better at everything it could do]
RE: Saturated Market?
Back in the late 1990's and early 2000's we had a lot of improvements in PDAs. Now it's a mature market, subtle improvements (and even backward moves like NVFS and eliminating vibrating alarms) so people hold on to their old ones, buy good used models, or smartphones.
Noobies to PDAs are higher fruit in a dying economy with gasoline doubled in price in a year ($3.58/gallon today here). If ExxonMobil steals your "toy" money, you consider all other purchases much more carefully.
Mio is a GPS PND company
What Palm need is a TX with a built in GPS for $350, TE2 with built in GPS for $250 and a zire 22 with a larger screen and a GPS for $150. That will allow them to increase sales.
Moshe
RE: Mio is a GPS PND company
Palm, HP and DELL are stupid not to realize that PDA have transform into a GPS devices.
An interesting point which leads to the question: Just how well are Garmin's GPS Palm OS handhelds selling?
The answer appears to be they're selling well enough for Garmin to introduce new models but Garmin still appears to be a very long way off from selling as many handhelds as Palm.If what mbuhboot is true and the profitable future of handhelds is in GPS, then Palm can do the sensible thing and acquire Garmin or at least its handheld business.
I personally, I'm not convinced that GPS will save the handheld, after all, smartphones (including the Treo 650) can be used with GPS receivers too.
RE: Mio is a GPS PND company
One has to wonder if the struggle is really worth it.
Surur
They said I only argued for the sake of arguing, but after an hour I convinced them they were wrong...
Even better...
My prediction? The units already produced & sitting in a warehouse somewhere will end up being marked down & blown out as an "exclusive" Amazon/Overstock/Bass Pro/QCV offering. Garmin will then make a very quiet withdrawal from the POS market to focus on their own surprisingly feature-rich GPS car units & a few WinMob devices.
GPS is not the answer for PDAs. I think more of a back to basics approach would be the best strategy. Let PDAs offer better battery life than cell phones or smartphones, larger/sharper/brighter screens and utterly reliable operation (regardless of OS).
I think the dedicated PDA market could split two ways--basic $100 Zire type units for students/casual business users/soccer moms and then really high-end LD-style (but more rugged & more reliable) units for media affecionados and/or vertical applications.
Someone could take a LD type unit, stick WinMob/Linux etc on it, add a BIG removable battery and a CF slot and sell one version to portable media junkies. The other version with a larger screen and ruggedized design would be ideal for field techs, outdoorsmen etc.
Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX
RE: Mio is a GPS PND company
RE: Mio is a GPS PND company
Inital impressions on the iQue? When is the review going to hit BargainBrighthand.com?
;-)
Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX
saturated market
"Most people - the VAST majority of people - have little to no need for a handheld.
In fact, I wonder what the "profile" of a consistent handheld user is?
I bet the #1 hit is "student" followed by "someone who is travelling most of the time" with every other user a distant third.
For those who stay, usually, within a 50-mile radius of home a handheld is overkill.
I wouldn't take that bet. A larger number of people don't travel very far for work but use a PDA daily: healthcare professionals.
They are an extremely convient, portable way to carry a large amount of data (patient info, reference texts, even photos). Most don't need or want anything fancy (maybe at larger institutions WiFi/BT is helpful in accessing the hospital's patient charts/labs/xrays). They just want one that will work.
I think should improve the basics: increasing battery life, a user replaceable battery, reliability, and user-friendly interface, etc. rather than chasing what everyone else is doing.
Great spirits have always encountered violent opposition from mediocre minds.
-Albert Einstein
RE: saturated market
This is a very wierd comment, but if it's a common misperception might shed light on waning sales.
I like having access to my phone book, checkbook, calendar, etc. wherever I am - even at home - without needing to boot up a computer or carry around a huge leather organizer, or an unreplaceable checkbook register.
Maybe I'm old fashioned, but I'm still basically with Jeff Hawkins' original concept of the things, no matter if they have bolted on a radio to some models. It's an easily portable portal to important information that I often need, and it's backed up. I don't need to be 50 miles from home to find that useful.
RE: saturated market
> ...I like having access to my phone book, checkbook, calendar,
> etc. wherever I am - even at home - without needing to boot up a
> computer or carry around a huge leather organizer, or an
> unreplaceable checkbook register...
I don't call enough people to need a phone book while I'm not at work or home, nor do I need a checkbook register anywhere but home, nor a calendar (though my phone does indeed have one). Folks who need such things "on the run" are UNDOUBTEDLY way down on the list of endusers of handhelds (not nonexistent, just of few numbers - and THAT is the whole point of a "Who uses handhelds anyway?" subthread...).
Race to ZERO
PDA's are DEAD. Smartphones rule.
There's no reason to buy/manage/charge/carry/sync/fight/fumble with 2+ devices when ONE Smartphone can do it all.
It's over, Vampire. It's OVER!!!!!!!
http://www.wavcentral.com/sounds/movies/first_blood/fbover.mp3
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How about they're just too expensive?
[plug]With a better screen, the Palm Z22 is sure to be a HUGE hit in the PDA world and launch Palm back to ownership of the handheld market. Lets wait and see what's in store for the Z23.[/plug]
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