Convergence will drive users to ditch standalone PDAs

"Research house IDC is warning PDA manufacturers that customers will soon start ditching their handhelds if they do not start offering voice functionality.

"The report from IDC said that over the coming years, consumers and businesses will begin to demand advanced handheld devices, such as PDAs and handheld PCs, with voice communication functions that allow users to make mobile phone calls.

"The movement in the market comes after the massive growth in recent years in demand for standalone data-focused handhelds, which in upcoming quarters will not be highly sought."

[...]

"However, not everyone agrees with this prognosis. Simon Buckingham the CEO of Mobile Streams, a UK-based consulting firm, said that there will be a market for all devices, including standalones. Buckingham admits that converged devices will grow in popularity, but predicted that the market will be no larger than the standalone market in five year's time.

"He also acknowledged that the pending merger between Palm and Handspring is evidence that Palm is looking to gain a stronger foothold in the converged sector, but Buckingham suggested that the company is likely to continue to push traditional Palm devices for the foreseeable future.

"I don't think any huge conclusions can be drawn about the industry at this stage," Buckingham said. "Our philosophy is, 'different devices for different people.' And don't forget there is a big installed based of people with Palms and other handhelds who may not want to switch. It's our position that there is a future for all devices."