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, In-Stat forecasts.
Nevertheless, the main reason that consumers are purchasing portable MP3 players and video-capable PMPs today is the devices' audio playback capability, In-Stat said.
"Only 11 percent of survey respondents say they will purchase a PMP primarily for its video playback function," said 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."
Among the findings of In-Stat's research, "Worldwide Demand Remains Strong for MP3 and Portable Media Players":
* 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 percent own an MP3 player or other PMP.
In-Stat said it does not expect music-enabled cell phone shipments to soon displace dedicated PMP/MP3 player shipments, but it forecast an opportunity for cell phone manufacturers to capture consumers who are considering cheap, audio-only MP3 players.
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