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Handhelds never to become truly popular?By Jørgen Sundgot, Tuesday 6 January 2004
Jupiter Research predicts handheld penetration will only reach a meagre 7% of the overall U.S. population by 2008 - yet opportunities are present for PIM devices.

Jupiter Research, a division of Jupitermedia, forecasts that the U.S. installed base of handheld PDAs will number just over 14 million at the end of 2003 and will only grow to 20 million by 2008, a 7% penetration of the overall U.S. population. In addition, Jupiter Research reports that the adoption of these portable devices increases as their size and complexity of use decreases.

Therefore, said Jupiter Research, the company has taken upon itself to identify the sweet spot for handhelds: those that offer voice, personal information management (PIM) or a combination of the two, and focus less on other integrated functions.

To clarify the marketplace, Jupiter Research created a PDA Taxonomy covering device form factor and identifying key attributes that define mobile usage. "We explored the reasons why vendors are creating multi-function devices and measured those against actual consumer demand for functionality and the number of devices people are willing to carry," said Jupiter Research Vice President and Research Director, Michael Gartenberg.

As part of the report, Jupiter Research conducted an independent survey to assess U.S. consumer demand for PDA features and form factors, and another survey to determine their willingness to carry multiple devices.

"Basic PDAs with excellent PIM functionality will continue to make up the majority of sales while higher end devices will remain in niche markets only," Gartenberg said. "But as phones with integrated and functional PDA capability come into the market, they can spur growth opportunities for vendors while eschewing other less desirable features such as game play or media integration," added Gartenberg.
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