In the fourth quarter of 2004, brand-name PDA (Personal Digital Assistant) vendors in North America, such as Dell, HP, and PalmOne, launched promotions and new offerings to seize abundant seasonal effects in major markets of Western Europe and North America. Operators and channel players in Western Europe and Asia Pacific released orders to ride on mounting demand for Phone PDA and GPS (Global Positioning System) PDA. Both factors boosted Taiwanese PDA shipment volume to reach approximately 2.9 million units in the fourth quarter. Marking another record high, the volume jumped 28% sequentially and 29% from around 2.3 million units seen in the fourth quarter of 2003.
Second-quarter shipment value grew 65% year-on-year to rake up US$680 million as a result of volume growth. Furthermore, changes in product mix pushed up PDA ASP (Average Selling Price) to US$235, registering a sequential increase of 30%. Share of high-end Phone PDA shipments grew to 16%. Mid-range and high-end models adopting Wi-Fi and GPS modules as well as VGA (Video Graphics Array) display also climbed substantially in shipment share in the fourth quarter.
Throughout 2004, due to absence of noticeable growth in the global PDA market, vendors such as Sony, Toshiba, and Sharp announced decisions to exit the market. However, the Taiwanese PDA industry continued to grow at a healthy pace as brand-name vendors increased share of outsourcing to Taiwanese makers: Dell, HP, PalmOne all released orders for new PDA and Phone PDA models. In addition, demand for Phone PDA and GPS PDA soared across Western Europe and Asia Pacific, making operators and channel players in these markets important sources of orders for Taiwanese makers. Taiwanese PDA shipment volume is estimated to have climbed 45% from 2003 to approximately nine million units in 2004 while shipment value totaled US$1.8 billion.
In 2005, growth momentum will likely come from offerings with value-added functionality such as Wi-Fi PDA, Phone PDA, and GPS PDA. Western Europe and North America will continue to be key markets for PDA makers. In the first quarter of 2005, brand-name players will begin to adjust their inventories in the wake of a strong retail season. Taiwanese PDA shipments are thus expected to hover at 2.7 million units. However, the performance is likely to be squeezed by undersupply of key components such as application processors in the first quarter.
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