Single-Use MP3 Players Decline

Written by Adam Gosling

Tuesday, 01 May 2007

The iPod may still be making headlines, but music capable mobile phones are putting pressure on single use compressed music devices as Apple itself shifts consumer perception toward music phones, says IDC. Music phones, cellular phones capable of playing compressed music files such as MP3s, will become increasingly attractive to the mass consumer market with handsets being subsidized by the mobile operators, predicts industry research outfit, IDC Australia. By 2011, IDC predicts that music phones will reach a penetration of 84% amongst mobile users. "Handset vendors, most notably Sony Ericsson, have well-positioned sub-brands that target a music-centric audience and are investing heavily into this area. At the same time, mobile operators are urging mobile users towards embracing their 3G content portals and music services to minimise subscriber churn and to increase average revenue per user, thus further escalating the marketing push behind music phones," said Jerson Yau, Research Analyst for Mobility & Wireless Research, IDC Australia. In the face of this growth sales of regular portable MP3 players is beginning to slow down. There is no doubt that portable MP3 players were adopted at record speed, notes the researcher, but as the MP3 player market reaches saturation and faces heated competition from alternative devices, IDC expects market growth to slow considerably. The research findings are contained in a study, titled "In My Place: Australia Portable Compressed Audio (MP3) Player 2007-2011 Forecast and Analysis." The report focuses on the Australian market and contrasts the market potential of single user MP3 players like the iPod against the market for music phones. The study also provides market sizing and forecast of unit shipments, revenue, and average selling prices for portable MP3 players for the 2006-2011 forecast period. IDC argues that while Apple has maintained its dominance on both the device and service fronts of the portable music market with its iPod brand players and iTunes music download store, the announcement of the iPhone in January will begin to shift consumer mindshare from standalone MP3 players towards music phones. Apple's acceptance of the music phone will help to educate mainstream consumers to consider mobile phones as viable options, says IDC. This will impact the growth of the standalone MP3 player market especially at a time when the market relies on replacement purchases. IDCs study finds that music capabilities on phones have already reached mainstream. Whether or not consumers are using phones to substitute standalone MP3 players is a different question, there is no doubt that handset vendors are ready to position music phones as viable substitutes for standalone MP3 players, says the researcher. Related news items Hybrid Drive Boosts Laptop's Skillset -10/10/2007 The Poor Man's Palm -02/10/2007 Ringtone Service Wins Creativity Award -26/09/2007 Palm Goes Consumer With Treo 500v -12/09/2007 Vodafone UK Promises All-You-Can-Hear Music -12/09/2007 Newer news items Walkman W890i Now In Oz -11/03/2008 Plantronics Convertible: A Neat Stereo Solution -25/02/2008 Older news items Airlines Agree To Integrate iPods: UPDATE -14/11/2006 Apple Clears iPod Factory -20/08/2006 Mylo No Go For Oz -10/08/2006 Mobile Music - Car Makers Plug Into iPod -05/08/2006 Nokia Sells 1 Million 3250's In Under Four Months -12/07/2006 Tag This Now: