The report observes that recent devices, known as Personal Media Players (PMPs) or Personal Video Players (PVPs), carry high price tags and are most useful to consumers who already have a lot of their own content. One of the critical needs for success in this product segment is the availability of content. Today, consumers have some content of their own, but many in the industry feel that the real value of these products will emerge from widespread use of downloadable video content, In-Stat/MDR says.
The report notes that this year's products will primarily attract PC savvy, early-adopters; however, most companies are targeting three types of users: the commuter, the traveler, and people wanting to entertain their children. In-Stat/MDR believes that overall, this is a viable market segment, but it may take a while to develop to the scale that many electronics manufacturers desire.
Other findings in the report include:
- Most of today's devices are using a 1.8-inch or 2.5-inch, 20GB drive. Capacity will increase as access to content increases and component prices decrease.
- The majority of today's products are either based on Microsoft's Portable Media Center (PMC) platform or on a Linux platform. In-Stat/MDR expects that PMC devices will represent about 25% of shipments this year.
- Most current or upcoming products will be priced in the $400-$600 range. The average selling price is not expected to decrease very quickly over the forecasted period.
- Some PMP products are PC-centric, while others do not require the use of the PC. This differentiation may sway some users in their choice of devices.
More information on the report, titled
Handheld Audio/Video Players: Audio,Video and More!, is available at the company's
website.
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