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Video-capable players to outsell audio-only models by 2009: Report PDF Print E-mail
Written by Darren Yates   
Tuesday, 28 August 2007




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Few consumers want video but it’s so cheap to include, research says they’ll end up with it anyway.

According to the latest research, the number of audio-only portable media players (PMPs) will be overtaken by shipments of video-capable players by 2009. However, it seems that it’s falling costs and growing competition that is driving the addition of video playback features rather than consumer demand.

The latest research from InStat says that the worldwide combined shipment of MP3 players and PMPs will rise from 182million in 2006 to 275million by 2011. InStat’s latest US consumer survey found that of 2408 respondents, 52% already own an MP3 player or PMP.

However, despite the rise and rise of audio-capable mobile cellphones, InStat doesn’t believe they’ll usurp the dedicated MP3 player anytime soon. That said, there is an opportunity for cellphone manufacturers to make inroads into the market.

The major problem facing PMP manufacturers is consumer apathy towards video.

“Only 11% of survey respondents say they will purchase a PMP primarily for its video playback function,” says 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.”

This isn’t the sort of news Apple would be wanting to hear if rumours of an imminent release of 6G video-capable iPods is true however, the maker of the iconic player seems to be immune from market forces.

The company recently announced as part of its Q3 results ending June 30, 2007 that it sold just short of 10million iPods for the quarter, a number it’s unlikely to have trouble exceeding should rumours of a September release be accurate.

However, as growth in video downloads continues and Hollywood studios finally decide how they plan to proceed with movie downloads, chances are good that this will pick up as will the numbers of video-capable players available.

One question the survey does not answer though is the cost aspect.

While many MP3 (audio-only) players are low-cost compact devices such as the SanDisk Sansa Clip announced today, PMPs are by their nature larger, consist of more storage and are as a result more expensive to produce.

Rumours of an iPhone-like iPod with a full-panel screen may force the hand of other manufacturers to follow suit but higher costs and greater complexity in size and storage ensure audio player numbers will not shrink in favour of PMPs any time soon.





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