Sony has decided not to launch any new Clie personal
digital assistants in the US for the rest of the year.
"Sony continues to view mobile devices as a key pillar to our
core business strategy. Presently, Sony is reassessing the
direction of the conventional PDA market, and Sony will not
introduce any new Clie handheld models in the US this fall," the
company said.
"Product development and sales continue for the Japanese market
only. Sony is taking this time to examine the conventional PDA
business and how it will transition into the future."
Sony shipped just over 100,000 Clie units in the US during the
first quarter of 2004, good enough for third place overall
according to IDC research. This was a little less than half of
Sony's worldwide shipments in the same period.
However, Sony's first-quarter shipments worldwide plunged 49.6%
compared with the first quarter of 2003 amid a larger industry
decline of 11.7% over the same period.
PDA users are, increasingly, opting for mobile phones and
converged smartphone devices when upgrading from their older
handhelds, said IDC analyst Alex Slawsby. Voice capability is
quickly becoming the must-have application in a handheld
device.
Sony has already mapped out a mobile phone strategy through its
joint venture with Ericsson, and there was little sign that the
Sony Ericsson team collaborated with the Clie team, Slawsby
said.
Sony Ericsson has made a strong commitment to the Symbian
operating system, while the Clie was the highest-profile Palm OS
licensee outside of PalmOne.
Additionally, Sony built the Clie brand on the PDA's multimedia
features and striking design, rather than communications features
such as Wi-Fi chips that were only added in recent models.
"Sony has pushed [the market] in all sorts of directions, but
this is not a category that's expanding," Slawsby said. "We don't
expect anything to turn this trend around: the mobile phone is of a
higher priority [to US users]."
Sony released about 30 Clie handhelds over a three-year period,
said Todd Kort, principal analyst with Gartner. The plethora of new
models flooding the market alienated some customers who did not
want to buy a new handheld because a new and better one would
arrive within a few weeks, he added.
Sony's decision has a substantial impact on PalmSource,
developer of the Palm OS, Kort said. With Sony's departure from the
US market, PalmSource now gleans about 90% of its business from
PalmOne, about eight months after the two companies formally
separated in a strategy designed to foster their independence.
"Almost in effect, they're back together again," Kort added.
Sony will continue to honour warranties and support contracts
for US customers.
Tom Krazit writes for IDG News
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