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News

Video iPod Seen as Catalyst For PMP Market

Research firm In-Stat on Wednesday issued a report in which it said that Apple's video iPod has provided "a jumpstart" to the fledgling Portable Media Player (PMP) market, even though the device technically doesn't fit the category. As a result, the worldwide market for PMPs will hit five million units this year, up substantially from the 390,000 devices shipped two years ago.

In-Stat believes that the video iPod has increased consumer awareness of the existence of PMPs, in addition to spurring "a slew of video-capable portable MP3 players from competitors such as SanDisk, Creative, and Samsung," the firm said. A survey of 1,099 U.S. consumers found that 75% of them "have some level of familiarity with PMPs."

However, In-Stat analyst Stephanie Ethier noted: "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."

In-Stat's report, "Portable Media Players: Shipment Growth to Gain Traction in 2006," offers a five-year forecast of worldwide shipments and revenues in the PMP space, along with an in-depth look at PMP manufacturers and component suppliers, as well as such video content sites as the iTunes Music Store. The 36-page report is US$2,995.

Thanks to Playlist for the heads-up.

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