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Recession to halve PDA market growth

Sales up 50 per cent in 2001, not 100 per cent like last year

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Palm yesterday gloomily predicted the PDA market will not grow as explosively as it did last year.

The reason? Recession-hit US consumers will spend less this year. The result? Growth in the market will amount to no more than 50 per cent during 2001, compared to more than 100 per cent last year.

The prediction was made by Palm marketing head Satjiv Chahil during an interview with Bloomberg.

Chahil was quick to point out that 50 per cent growth is still pretty good - indeed, it is - but his comments are nevertheless a sign that the company is being more cautious about its sales expectations than it has in the past.

Palm and other PDA makers were certainly rather pleased with themselves earlier in the year when it emerged they had been unaffected by the dire slowdown in Christmas PC sales.

Market researcher Gartner is currently predicting average annual growth of around 47 per cent over the next four years for the European market. It reckons 2.5 million PDAs will be sold here this year, rising to 6.5 million in 2004. ®

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