Video-Enabled Portable Media Players Will Outsell Audio-Only Models By 2009

Monday, August 27th, 2007

SCOTTSDALE, Ariz., — Driven by increased broadband penetration, declining price points, and a growing catalogue of online audio and video content, the market for MP3 players and portable media players (PMPs) will remain strong over the next five years, reports In-Stat. Nevertheless, according to In-Stat’s latest primary research, the main reason consumers are purchasing portable MP3 players and video-capable PMPs today is for the devices’ audio playback capability, the high-tech market research firm says.

“Only 11% of survey respondents say they will purchase a PMP primarily for its video playback function,” says Stephanie Ethier, In-Stat analyst. “Still, the cost of incorporating video into portable devices continues to decline. As a result, In-Stat expects shipment growth of video-enabled PMPs to outpace that of audio-only MP3 players by the end of 2008.”

Recent research by In-Stat found the following:

  • Worldwide unit shipments for audio-only MP3 players and PMPs combined will reach 275 million units in 2011, up from 182 million in 2006.
  • Of the 2,408 respondents to In-Stat’s latest survey of US consumers, 52% own an MP3 player or PMP.
  • In-Stat does not expect music-enabled cell phone shipments to displace dedicated PMP/MP3 player shipments any time soon, but there is an opportunity for cell phone manufacturers to capture those consumers who are considering cheap, audio-only MP3 players.

Recent In-Stat research, Worldwide Demand Remains Strong for MP3 and Portable Media Players (#IN0703439ID), covers the worldwide market for MP3 players and portable media players. It provides forecasts for PMP/MP3 player unit shipments and revenue through 2011. It also includes analysis of In-Stat’s US consumer survey concerning PMP/MP3 players. Finally, 2006 vendor market shares are included.

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