The worldwide market for handheld devices experienced its seventh consecutive quarter of YTY decline in Q3 2005. According to IDC, device shipments decreased 16.9% YTY and fell 8.8% QTQ in Q3 2005 to 1.6 mln units. Even as the overall market continues to trend downwards, device manufacturers are steadily pushing forward with new product introductions, software upgrades, and solution deployment, particularly GPS. Given these improvements and the upcoming holiday season, shipments are expected to increase sequentially but decline year over year in Q4. At the same time, the growth of converged mobile devices, which combine voice and data capabilities in a single form factor, is placing heightened pressure on the handheld market.