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Worldwide shipments of handheld devices dropped significantly in the second quarter of the year, as continued tight budgets and a lack of compelling new applications stifled demand, a report released by IDC this week revealed. Handheld device shipments dropped 10.7 percent in the second quarter compared to the same period a year earlier, to 2.27 million units. That is a 10.2 percent sequential drop over the prior quarter, indicating dried-up demand among businesses who have more pressing IT spending priorities, IDC said.