PDA sales going downhill in Japan

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Compiled from outside sources by Lisa Tsai, Research Center; Willie Teng, DigiTimes.com [Friday 4 January 2002] Since August, PDA (personal digital assistant) sales in Japan have cooled significantly, especially during the holiday seasons, according to market research firm BCN. Industry insiders pointed out that the lack of application software is the main reason for the weak demand. With Handspring cutting prices and the introduction of Sony s Clie series, Japan s PDA sales went up 25% year-on-year by volume in August. However, due to a drop in average price, sales value during the same period dipped 1% from a year earlier. The average price in August fell to 29,400 yen from July s 39,700 yen. PDA sales began to drop significantly after the summer. In November, sales went down 44% by volume and 48% by value compared to a year earlier. The lack of quality application software has hampered PDA makers efforts to move away from the diary/calendar image and increase their user base, industry insiders said. PDA makers originally expected application software for mobile communications would drive up consumer demand. However, mobile phone makers, already with an edge in mobile technology, are expanding product functions to counterattack, greatly stunting PDA sales this year.



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