Digital Audio Player Market Set to Explode
The market for both hard disk drive and Flash-based portable audio players is expected to reach more than 104 million units by 2009, up from 27.8 million units in 2004, reports In-Stat. Falling prices, the availability of legitimate subscription and pay-per-download online music sites, smaller hard disk drives and increasing Flash memory capacities are expected to contribute wide adoption.
"Vendors are striving to differentiate products by offering a wide range of price points, memory capacities and features," said Stephanie Guza, an analyst with In-Stat. "We are seeing increased segmentation. For example, the hard disk drive (HDD) digital audio player segment can be subdivided into two categories: the 1-inch or smaller segment and the 1.8-inch segment."
Report Highlights
Revenue for both HDD and Flash-based MP3 players reached approximately $4.5 billion, a remarkable increase of almost 200% over 2003.
Apple is the leader in worldwide portable audio players with 30.2% of the combined HDD and Flash-based portable audio player market.
Other leading vendors include Rio, iRiver and Creative.
In-Stat expects that 1GB capacity or greater Flash MP3 players will represent just over 20% of all Flash-based MP3 player shipments worldwide by the end of this year.
Consumer survey data shows that the percentage of U.S. respondents owning a digital audio player has increased from 16% in 2001 to 25% in 2005.
"Vendors are striving to differentiate products by offering a wide range of price points, memory capacities and features," said Stephanie Guza, an analyst with In-Stat. "We are seeing increased segmentation. For example, the hard disk drive (HDD) digital audio player segment can be subdivided into two categories: the 1-inch or smaller segment and the 1.8-inch segment."
Report Highlights
Revenue for both HDD and Flash-based MP3 players reached approximately $4.5 billion, a remarkable increase of almost 200% over 2003.
Apple is the leader in worldwide portable audio players with 30.2% of the combined HDD and Flash-based portable audio player market.
Other leading vendors include Rio, iRiver and Creative.
In-Stat expects that 1GB capacity or greater Flash MP3 players will represent just over 20% of all Flash-based MP3 player shipments worldwide by the end of this year.
Consumer survey data shows that the percentage of U.S. respondents owning a digital audio player has increased from 16% in 2001 to 25% in 2005.
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