Competitors Scramble for Hot Features as PMP/MP3 Player Market Loses Steam

SCOTTSDALE, Ariz., August 3, 2009 – As the worldwide PMP/MP3 market matures, with shipment growth of only 5% in 2009, competitors are scrambling to add features such as touchscreens and Wi-Fi connectivity to re-ignite demand reports In-Stat (www.in-stat.com). Just a few years ago, the PMP/MP3 player market was among the strongest growth segments in the portable consumer electronic (CE) industry. Today, the market is stalled due to a perfect storm of weak consumer demand, a poor economic environment, a stalled replacement market, and competition from the iPhone and other audio/video-capable smartphones.

“Among the lone bright spots in the PMP market is Wi-Fi enabled PMPs,” says Stephanie Ethier, In-Stat analyst. “Unit shipments of Wi-Fi-enabled PMPs will grow more than four-fold by 2013 from the 14 million units shipped in 2008.”

Recent research by In-Stat found the following:

• Total worldwide shipments of PMP players will reach 225 million in 2009, with Asia Pacific representing the largest geographic market.

• The market is decidedly shifting to video-enabled devices. By 2013, only 15% of PMP players will be audio-only devices.

• Among the key PMP competitors are: Apple, Archos, Creative Technology, iRiver, ZVUE Corporation, Microsoft, SanDisk, Samsung, and Toshiba.

• The total semiconductor opportunity for PMP/MP3 player suppliers has peaked and will decline below $5 billion by 2013. NAND Flash and Video processors make up the majority of semiconductor revenue.

• Among the key PMP Semiconductor competitors are: Actions Semiconductor, NVIDIA, Texas Instruments, Toshiba Semiconductor, Freescale Semiconductor (SigmaTel).

The research, “Worldwide PMP/MP3 Player Shipments Plateau as Market Succumbs to Competition from Emerging Connected Device Segment” (#IN0904511ID), covers the worldwide market for portable media players and MP3 devices. It includes:

• Worldwide and regional unit sales forecasts for PMP/MP3 players by type through 2013.

• Bill-of-Material forecasts for an 8GB Flash-based, video-capable PMP through 2013.

• Worldwide total silicon and non-silicon component available market forecasts through 2013.

• PMP vendor profiles: Apple, Archos, Creative Technology, iRiver, ZVUE Corporation, Microsoft, SanDisk, Samsung, and Toshiba.

• PMP supplier profiles: Actions Semiconductor, nVidia, Texas Instruments, Toshiba Semiconductor, and Freescale Semiconductor.

For more information on this research or to purchase it online, please visit: email.in-stat.com/cgi-bin4/DM/y/hBS7u0Hl3hj0K56[...] or contact a sales representative: email.in-stat.com/cgi-bin4/DM/y/hBS7u0Hl3hj0K56[...] The price is $2,495 (US).

This research is part of In-Stat’s Portable Entertainment Device service, which provides comprehensive analysis of the market for the hottest portable consumer electronic devices, such as portable media players, handheld gaming consoles, and personal navigation devices, and coverage of emerging devices, such as electronic books, digital photo frames, and electronic edutainment toys. The service also provides insight into the technologies, consumer requirements, and business models driving current and future demand.

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