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Portable MP3 Player Market to Double to 1.3m Units in 2005, Predicts IDC

  • 04 April, 2005 11:42

<p>NORTH SYDNEY, April 4th, 2005 - According to IDC's recent report "Australia Portable Compressed Audio (MP3) Player Market Analysis and Forecast 2004-2009: Explosive Growth and More to Come", IDC predicts that by the end of 2005, the total number of portable MP3 players will reach 1.3 million units.</p>
<p>"The market for portable MP3 players started to experience phenomenal growth during the second half of 2004, achieving 126% and 135% growth in shipments units in the third and fourth quarter of 2004 respectively. IDC predicts the total number of unit shipments of portable MP3 players will reach 1.3 million by the end of 2005 and is forecasted to reach almost 2.4 million units by 2009."</p>
<p>"2005 and 2006 will see the highest portable MP3 player growth", said Landry Fevre, IDC Research Director for Telecommunications and Consumer Digital Markets.</p>
<p>Total portable MP3 players revenue will reach A$357 million by 2009 and IDC predicts portable jukebox average selling prices (ASP) to decline more rapidly than portable flash players.</p>
<p>"ASPs for portable flash players will increase by 6.8% in 2005 because of the influence of the higher-end brands, such as Apple, Sony and Samsung pulling their weight and intensifying their marketing and promotion activities."</p>
<p>"However, cost per megabyte of flash memory is experiencing a downward trend and there will be fierce competition within the portable flash segment with some brands offering portable flash players below A$50. Declining ASPs for portable flash players is unavoidable and ASPs will start and continue to drop from 2006 onwards", added Landry Fevre.</p>
<p>Apple holds the leadership position in this market and has played an undeniable trend-setting role. The iPod has become not only a fashion icon, but also the generic term for portable MP3 players.</p>
<p>The surge in shipments in the third and fourth quarter of 2004 was triggered by the launch of the iPod Mini in July 2004 in the Australian market. IDC expects that Apple will continue to set the benchmark for the rest of the market and intensify the competition with vendors such as BenQ, Creative, JNC, iRiver, Olympus, Samsung and Sony who will constantly compare their offerings against Apple's.</p>
<p>IDC expects that Sony will become number two in this market by 2006. Sony has a lot of strengths to build on in the portable audio market, not the least of which is historic leadership positions in consumer electronics and portable audio, a commitment to sleek industrial design, nation-wide channel relationships and brand recognition.</p>
<p>To purchase this report, please call the IDC sales team on (61 2) 9925-2226 or email Gary Clarke on gclarke@idc.com.</p>
<p>For press enquiries please contact:
Landry Fevre
Research Director, Telecommunications
Email: lfevre@idc.com
Phone: 61 2 9925 2252</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/detail.asp?releaseid=154</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>

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