Market Dynamics and Challenges in Handheld Devices PPT

This PPT slide, part of the 91-slide Computer Industry Analysis Training PowerPoint presentation, presents a dual analysis of the handheld device market, highlighting both its growth potential and the challenges posed by commoditization. On the left, a bar graph illustrates the significant revenue growth in the handheld device sector from 1999 to 2003, with a compound annual growth rate (CAGR) of 28%. The figures indicate a rise from $6.3 billion in 1999 to $16.9 billion in 2003. This growth is attributed to the strategic importance of handheld devices across various customer segments, particularly in enterprise settings where there is a demand for server functionality and mobile professionals who require access to information on-the-go.

On the right side, another bar graph shows the average selling price (ASP) of these devices, which has experienced a decline, with a CAGR of -11% over the same period. The ASP fell from $761 in 1999 to $475 in 2003. This trend indicates that the market is becoming increasingly competitive and low-margin, suggesting that while the volume of sales may increase, profitability could be under pressure.

The slide concludes with a cautionary note that the handheld device market may not offer significant opportunities for new entrants, as it is characterized by intense competition, established enterprise players, and declining margins. This analysis serves as a critical reminder for potential investors or stakeholders to weigh the growth prospects against the inherent risks of entering a saturated market.

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