PDA shipments in the first quarter of 2005 have declined by 26 percent, according to analyst IDC.
"The anticipated demise of the pen-based or PDA market is definitely on its way, as signalled by its lacklustre performance in the quarter," said IDC analyst, Mercie Clement in a statement.
"The PDA market in Australia has reached a very high level of maturity and is being increasingly cannibalised by devices combining data and voice capability."
Clement said IDC expects the success of converged devices to continue through 2005.
"There will be a greater reliance on mobile devices including smart handheld devices with the growth of the mobile workforce, spurred by increased corporate travel, more flexible work arrangements, and a more fluid workforce."
PDA vendors are fighting back though with new models featuring MP3, photo storage and viewing, and even GPS navigation, Clement noted.
In the PDA and data-centric device market, HP was the leader with 17.3 percent share followed by Research in Motion (RIM) with 15 percent. PalmOne came in at number three with 14.9 percent. O2 and Sony Ericsson rounded out the top five with 13.2 and 10.9 percent respectively.