Hand-held computer sales will rise 18 percent this year, the same pace as last year, as a slowdown in spending by consumers and businesses holds growth to less than one-sixth the pace of 2000, a report said.
Shipments of the pocket-sized computers made by companies including Palm Inc, Hewlett-Packard Co and Research in Motion Ltd will rise to 15.5 million this year from 13 million last year, according to a research report from Dataquest, a unit of Gartner Inc.
"To a slight extent, there is some saturation in the market," said Todd Kort, an analyst with Dataquest. "A lot of people who are interested in PDAs already own one."
The growth of handheld computer sales has slowed since more than doubling in 2000 as the US economy moved toward its first recession in a decade, trimming demand for electronics. Sales are expected to accelerate in 2003 as consumers buy faster, higher-resolution models and businesses invest more in computer equipment for their employees, according to Kort.
Spending on the devices will rise by more than 20 percent to US$4.6 billion this year due to sales of higher-priced models with color displays, more powerful processors and greater storage capacity, according to the Dataquest report.
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