According to IDC, the Pocket PC has increased in market share from 10 to 18 percent since April. As such, IDC analyst Kevin Burden has said that Microsoft will have almost 40% of the PDA market.
On the other hand, Palm outsold the PPC 14-1 during September vs. 12-1 in September 1999. Click here for the C|Net article.
I personally don't believe any predictions on what people will be running on their handhelds in the future. Going by analysts estimates 2 years ago, Microsoft should have taken over by now. I do believe however that Palm and company need to improve key features like sound and screen resolution or they will be left behind.