Monday, October 24, 2005

Yankee Group: Five-Year Forecast for Consumer Portable Device Adoption

Yankee Group has issued a US Portable Entertainment Forecast, which predicts consumer portable device adoption and spending through 2010. Key findings of the forecast include:

  • By 2009, the portable game business will be worth $2.3 billion
  • One-half of all portable music players will be phone hybrids by 2009, yet these phones will account for only one-third of the portable music service revenue
  • Dedicated digital audio devices will continue to be used more exclusively for their single purpose
  • Game hand-held devices and phone hybrids will garner near equal share of revenue by 2009
Mike Goodman at Yankee Group said, "Within this new market dynamic, it will be crucial for companies to have a firm grasp of consumer behavior and the competitive landscape. The major players must understand who will lead and who will follow in order to successfully plan future strategy and appropriately target their investments."

Linda Barrabee at Yankee Group added, "The US Portable Entertainment Forecast comes at a crucial time for the industry. Now more than ever, companies need focused analysis and targeted data to determine opportunities for new product introduction and to distinguish between oversaturated and underserved markets."