Rugged handheld mobile computer sales increased by nearly 8 percent in the first quarter 2010 from last year's first quarter after struggling in 2009 when the market dropped by as much as 30 percent in certain regions because of the economic downturn, said VDC Research.

David Krebs, director of VDC's mobile and wireless practice, said the outlook for ruggedized devices for 2010 is better than expected thanks to better-than-expected sales in the first half of the year. He said some companies are reporting growth of 20 percent to 30 percent higher than in 2009. VDC Research is now projecting the rugged handheld computing market to grow to $2.1 billion globally, which will represent a growth rate of 8.6 percent over 2009, with 2.6 million units sold worldwide. VDC is expecting the growth to continue through 2014 with an annual compound growth rate of 8 percent.

"The surprises were the rate at which the activity increased,'' Krebs said in an interview with InformationWeek. "We were expecting a slower start to the year and it picked up...retail has really come back and is starting to spend in a significant way."

Field mobile workers are the real growth driver for rugged handhelds, Krebs said, as it is the least-penetrated market segment.

Still, challenges to ruggedized device sales remain; most notably, competition is from smartphones because they have a lower price point.

For more:
- see this InformationWeek article

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