In-Stat: MP3 Player Market to Reach 286 Million Units by 2010

According to a new report from In-Stat, "the rapidly growing worldwide market for Flash-based and Hard Disk Drive (HDD)-based players will jump from 140 million units in 2005 to 286 million by 2010. Drivers for this market include falling price points, the availability of legitimate subscription and pay-per-download online music sites, increasing Flash memory capacities, and enhanced functionality."

Stephanie Guza at In-Stat said, "Apple continues to dominate the market for MP3 players, particularly in the US. Apple competitors continue to face significant challenges, such as a constrained Flash memory supply, device and software integration, and the ‘cool factor’ associated with Apple’s iPod line of products.”

Key findings include:

• In-Stat consumer survey data shows 49% of MP3 player owners own an Apple iPod.
• Sales of low-end, Flash-based players were especially strong in 2005, particularly in Asian markets where some players are priced as low as $25.
• HDD-based models will continue to evolve into multimedia entertainment devices capable of audio, video, and imaging playback.