CCID Consulting: MP3/PMP Players' Economic Operation Status in 2008 and Development Trend in 2009
Posted on: Monday, 8 December 2008, 07:00 CST
After a few years of rapid development, currently,
Judging from the market development in recent years, the sales volume of
Characteristics of
MP3 Continues to Decline, Steady Growth for PMP
Compared with 2007, the sales volume of MP3 market has declined significantly. In 2008Q1, the sales volume of MP3 players was down 25.3% year- on-year, the sales volume in 2008Q2 was down 50.3% year-on-year, and sales volume in 2008Q3 was down 53.4% year-on-year.
After a period of refulgence in 2003 and 2004, with factories going bankrupt in 2005 and industrial shrink in 2006, sales volume decreased sharply in 2007. The market has stepped into a decline phrase, a downslide trend is inevitable.
Figure 1: Sales Volume and Year-on-Year Growth of
The largest sales volume happened in 2008Q1; 2008Q2 was the traditional off-season; Q3 was a traditional busy reason, but the market in 2008Q3 was down by 13.6%. July and August were the traditional promotion season, but affected by Olympic Games, and with competition from the PMP and mobile phones market, 2008Q3 recorded the worst sale through out the year.
Figure 2: Sales Volume and Quarter-on-Quarter Growth Rate of
Affected by the global financial crisis and
Figure 3: Sales Volume and Year-on-Year Growth of
In 2008, under a more stable market, with a balance in supply and demand,
and fuelled by the Beijing Olympics,
Figure 4: Sales Volume and Quarter-on-Quarter Growth Rate of
Middle-and Low-end MP3 Market Occupy Absolute Brunt, the Share of MP3 with
less than
Judging from the past seven quarters, the middle-and low-end MP3s are
still the mainstream in the market, with prices below
Flash Memory MP3 Player Leads the Market, 2G and 4G Products in Rapid Demand
Judging from the past seven quarters, flash memory MP3 players have absolute advantage, with HD MP3 players withdrawal from the market. For flash memory MP3s, 128M, 256M and 512M products gradually faded away in the competition, G capacity products are now leading the market. Among them, 1G products' sales volume are gradually showing a downward trend; 2G/4G products' sales volume has increased. In future market, 2G/4G products are the most likely to perform best.
Table 2: Sales Volume Structure of China's MP3 Market, 2007Q1-2008Q3, (by Capacity) Type Memory 07,Q1 07,Q2 07,Q3 07,Q4 08,Q1 08,Q2 08,Q3 Flash- 128M 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% MP3 256M 4.1% 2.1% 1.1% 0.9% 0.6% 0.2% 0.0% 512M 22.6% 11.4% 10.4% 9.2% 7.0% 3.9% 1.2% 1G 52.7% 50.2% 53.1% 55.7% 54.3% 47.7% 30.1% 2G 10.1% 22.8% 22.6% 22.5% 25.9% 34.4% 41.8% 4G 2.2% 5.1% 5.0% 5.0% 5.5% 7.1% 18.9% 8G 0.3% 0.9% 1.0% 1.1% 1.1% 1.2% 2.3% Others 7.5% 7.1% 6.0% 5.2% 5.2% 5.2% 5.7% Subtotal 99.6% 99.6% 99.2% 99.6% 99.6% 99.7% 100.0% HD-MP3 Subtotal 0.4% 0.4% 0.8% 0.4% 0.4% 0.3% 0.0% Total 100% 100% 100% 100% 100% 100% 100% Source: CCID Consulting, Oct. 2008Flash Memory PMP Player Under Spotlight
Flash memory products monopolize the MP3 player market, while for PMPs, flash memory medium quickly gained the attention of manufacturers. The market share of flash memory PMP products has increased to 87.8% in June.
Table 3: Sales Volume Structure of
Compared with HD, flash memory has longer battery life, smaller size, lower failure rate, but comes with higher cost. With technical progress and the popularity of flash memory applications, the cost of using flash memory as a medium continues to reduce. In 2006, 1G was the main stream of flash memory PMP player products, but currently, 2G and 4G are the most popular, and some manufacturers have launched 8G products. Flash medium players have sufficient capacity to support large capacity video content. Thus, flash memory medium has bright future, it will drive PMP player products' continuous price drop so as to drive PMP player market's development.
PMP Prices are Falling
Judging from seven quarters, with market's steady development and brand concentration, prices for PMP products' price has been falling continuously. The gradual expansion of the flash memory PMP player market drives the price drop in the whole PMP player market.
Figure 5: Product Price Trend of
As for capacity, prices for 2G and 80G products have fallen significantly. Prices for 1G and 4G products have declined slightly.
Besides, new price benchmarks are appearing along market development. 599,
Figure 6: Product Price Trend of
PMP's Video Support Ability Strengthened
Improving IC technologies and smooth industrial supply chain lead to enhanced video format support abilities of PMP players. PMP players that support FLV, RMVB, and other popular online video formats are available at present.
Besides, PMP will no more be the only kind of audio and video player. Digital products are integrating more functions to satisfy consumers' diversified demand, by which digital products can extend product life cycles. As a platform, PMP can integrate functions such as TV-OUT, mobile TV, GPS vehicle navigation, PDA, wireless surfing, and digital photo frame.
CCID Consulting believes that development of MP3/PMP market will slow down
due to global economic crisis in the 4th quarter. However, the rising gift
market is a positive factor to the PMP market. CCID Consulting forecasts that
sales volume and revenue of
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the
first Chinese consulting firm listed in the Growth Enterprise Market of the
Stock Exchange (GEM) of
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact: Cynthia Liu Coordinating Manager CCID Consulting Co., Ltd. Tel: +86-10-8855-9080 Email: liuyan@ccidconsulting.comSOURCE CCID Consulting Co., Ltd.
Source: PR Newswire
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