Domestic Native PDA Racing Toward 'Global 3rd Place'... Also Gaining Attention in the US

30% Growth Rate Accelerates Expansion with 'Amazon Effect'... US Industry on High Alert
US Report: "Point Mobile Faces Both Short- and Long-Term Risks as Industry Leader"
Possibility of Jumping to Global 3rd Place Also Anticipated

[Asia Economy Reporter Junhyung Lee] The U.S. industry is closely watching the growth of Point Mobile, a domestic industrial mobile device company partnered with Amazon. There is even analysis suggesting that thanks to the so-called 'Amazon Effect,' Point Mobile could rise to become the world's third-largest company in the sector. The U.S. is the largest market globally, home to the top two industrial mobile device companies. As device usage diversifies, the market's annual growth rate of 6% is expected to increase further.

U.S. Report: "Point Mobile Poses Risk to Industry Leader"

Northcoast Research, a U.S. market research firm, analyzed in a report released last month that Point Mobile poses both short-term and long-term risks to Zebra, the global leader in industrial mobile devices. Zebra is a 'mega' powerhouse holding over half of the global industrial handheld information terminal (PDA) market. Point Mobile's market share is only about 3%. Despite this, the unusual expansion of Point Mobile has led to such analysis.

First, the growth rate is remarkable. Point Mobile's revenue grew at an average annual rate of 30% over three years starting in 2017. Last year, it secured a contract with Amazon worth approximately 220 billion KRW and recorded a market capitalization of 90 billion KRW through its initial public offering (IPO). This 'double blessing' has further accelerated Point Mobile's recent high growth trajectory.

The report pointed out, "Zebra's short-term risk is a slowdown in growth due to Point Mobile," and "the long-term risk is Amazon expanding its contract with Point Mobile, causing Zebra to lose more business areas." It also stated, "Amazon recognizes only Point Mobile and Zebra as mobile device suppliers," adding, "Considering the contract with Aldi (Europe's top supermarket chain), Point Mobile is expected to easily exceed 110 billion KRW in sales this year." Point Mobile began supplying industrial PDAs to over 2,500 Aldi stores across Europe starting last month.

One of the gun-handle type PDA products supplied by Point Mobile to Amazon, the RF851.
[Photo by Point Mobile]

Potential Leap to Global 3rd Place... ‘Multiple Calculations’ Behind Amazon’s Investment

There is also a forecast that Point Mobile could leap to become the world's third-largest company. The analyst who authored the report suggested that Point Mobile could become the third-largest player in the industry, following Zebra and Honeywell, which together hold 62.5% of the market share. This was conditioned on Point Mobile continuing to focus on global market expansion, but CEO Kang Sam-kwon has stated that the company has aimed at the global market since its founding. Exports account for 90% of Point Mobile's revenue.

Amazon's investment in Point Mobile likely involves complex calculations. If Amazon exercises its warrant rights from last year's contract, it could acquire up to 1.48 million shares of Point Mobile, becoming the second-largest shareholder. The report noted, "This could be a move by Amazon to reduce its dependence on Zebra." Amazon purchases PDA products worth approximately 220 billion KRW annually from Zebra, which accounts for about 4% of Zebra's annual revenue.

This can also be seen as a strategic move to diversify its product supply chain. The report analyzed, "Amazon's investment in Point Mobile not only increases its understanding of the mobile device industry but also provides opportunities for supply chain diversity," adding, "(Point Mobile) is relatively small but possesses manufacturing and design expertise not found in competitors."

Meanwhile, last year the industrial PDA market size reached 43.5 trillion KRW. The industry estimates the market's annual growth rate at 5-6%.

This content was produced with the assistance of AI translation services.