NPD INTELECT PREDICTS RETAIL SALES OF PERSONAL DIGITAL ASSISTANTS WILL MORE THAN DOUBLE BY YEAR-END 2000

PORT WASHINGTON, NEW YORK, August 24, 2000 – According to leading marketing information provider NPD INTELECT Market Tracking, sales of personal digital assistants (PDAs) through retail, mail order and corporate reseller channels for first half of 2000 (January - June) approximated sales for all of 1999, suggesting that PDA sales will more than likely double by the end of year 2000.

According to NPD INTELECT, the personal digital assistant category finished 1999 with total unit sales of 1.3 million in the U.S. The same number of units were sold during the first half of 2000 alone. June 2000 unit sales of PDAs were up 190% vs. June 1999. Total dollar sales of personal digital assistants reached $436.5 million in 1999, while in the first half of 2000 total dollar sales approached $406.9 million.

Market share data show Palm series continues to be the leader in brand share, with 65% market share in June 2000. It is followed by Handspring (non-existent in June 1999) at 21%, which has taken a bite out of the business of Palm and Casio, and knocked Everex and Phillips out of the top five.

According to NPD INTELECT, the average price of a PDA slipped from $350 in June 1999 to $324 this June. Strong demand for PDAs has stabilized prices, unlike other categories where falling prices and increasing demand are closely tied. Also boding well for strong PDA growth is a slew of new products designed to appeal to new audiences.

"Initially PDA products were targeted to professionals, tech savvy consumers and men," concluded Lisa Schmidt, NPD INTELECT manager of technology products. "Today companies such as Handspring with its colorful Visors, Palm with its affordable M series ($150) and new Claudia Schiffer Palm, and Sony with its upcoming PDA line should open up the largely untapped, young consumer and female market. And with the anticipated holiday season, year-end sales should be very robust indeed."