Video-Enabled MP3: GenNext Technology

RNCOS: GenNext seems to be more enthusiastic for sophisticated & miniature products. The current fervor will result in a favorable growth in the sales of hi-fi devices such as video enabled MP3 players. Reduced prices, enhanced flash memory capacity and accessibility to digital music will further stimulate this growth. It’s anticipated that the worldwide sales of portable digital media devices such as MP3 players & PMPs shall rise 24%, making it to $27.9Mn by the end of 2006.

Market for flash based and HDD (Hard Disk Drive) based players will jump to $289Mn towards the year 2010, whereas it was just 142Mn in 2005. HDD based or MP3 models will continue to evolve as multimedia entertainment devices, equipped with audio/video and imaging playback.

- With ten-percentage points increase, the household penetration rate of portable

media devices grew by 25.3% in January 2006, while it was just 16% for the

same period in 2005.

- There was a strong growth registered in the sales of MP3 players in 2005, with

Asian markets being the center of it.

- Apple is the dominant player in the world market for MP3, while its competitors

are still facing problems such as constrained supply of flash memory.

- Penetration rate among online adults has jumped to 55Mn people, with 27.8% &

13% of them owning MP3 players and PMPs, respectively.

Portable Electronics Market - worldwide (2006) Publ 20060701