Further supporting data released by NPD recently, consumer electronics industry consulting firm iSuppi Corp. is expecting that sales of digital music players will slow sharply over the next five years.
But that doesn't mean that consumers aren't listening anymore. They're just shifting devices.
iSuppli estimates that revenues from MP3 players (including iPods) grew 8 percent worldwide in 2007 to $19.5 billion, up from $18 billion in 2006. But the firm expects that growth will slow to just 3.5 percent in 2008 to $20.2 billion. Sales growth is forecast to plateau to $20.7 billion by 2011.
The slowdown over the next 24 months is due to the "long-term threat" from music-capable cellphones, says iSuppli analyst Chris Crotty.
Don't feel bad for Cupertino though. The mounting competition from music-capable phones - which, according to NPD analyst Ross Rubin, now outnumber portable music/video players - means that Apple is well positioned for the future with its iPhone. They anticipated this change in consumer behavior, and likely are a leading catalyst for this shift.
As users become more accustomed to using their cellphones as entertainment devices - and as high-speed wireless networks continue to build out nationwide - consumers will expect more in terms of downloading and streaming functionality. And what makes you think that Apple doesn't anticipate that as well?
[New York Post]
(Side note: Is the guy in that photo working the Blue Steel pose?)
MP3 player sales will slow, not stop. This just means the market is reaching a point of saturation. Who doesn't have an mp3 player of some sort now? Are there any stores out there that don't sell 1 GB flash players from unknown Korean companies for $29.99 as a "great stocking stuffer." There's still $20 billion out there for mp3 players.
Don't fool yourself Ryan. Apple will be one of MANY MANY PLAYERS in music cellphones. Do you remember when the Walkman sold 100 million units? I sure do. Who is buying a Walkman today? So goes the iPod in a few years. Its just a device.
You have to ask yourself this question. Will people spend a couple hundred bucks to buy an iPod or MP3 player when you can get the exact same function on your cellphone at no extra price?
Everything is moving to the cellphone. Sat radio must go there too.
Who's buying a Walkman today ? Me I have a Walkman MP3 player that is awesome! I hate to say it but satellite radio music is sounding more like FM with the repetitiveness so I listen to MP3 players a lot more.
@ LAPTOP GAMER
Are you saying your iPod isn't repetitive? The playlist is capped. There's no surprises. Atleast if a channel gets old, you can always change it.