Video iPod Jumpstarts Portable Media Player Market

In-Stat:Even though Apple’s video-capable iPod technically does not fit the definition of a true Portable Media Player (PMP), it has given the product class a boost. Today, consumers are more aware of portable video, additional PMP brands, and ways in which they can download video to handheld devices, . In-Stat estimates that the worldwide market for true, video-centric PMPs will grow to 5 million units by the end of 2006, up from a mere 390,000 just two years ago. Despite the fact that PMP shipments are finally gaining traction, suppliers and manufacturers continue to face challenges. PMPs will continue to compete with other portable devices offering similar functionality, such as notebook computers, portable DVD players, handheld gaming products, and other mobile devices.

• The video-enabled iPod has spurred a slew of video-capable portable MP3 players from competitors such as SanDisk, Creative, and Samsung. These products are not classified as true PMPs, but they have helped establish the market for portable video.

• In a US-based survey of consumers, 75% of all respondents (n = 1,099) have some level of familiarity with PMPs.

• Over the next year, that improvements in video compression technology, download video content sites, and wireless communications will help drive the PMP market.

Portable Media Players: Shipment Growth to Gain Traction in 2006

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