After a strong multi-year run, the market for portable music players – including Apple’s insatiable iPod – is posed to shrink.
Revenue peaked in 2008, says In-Stat
The economy is only part of the story.
In-Stat projects growth will temper considerable over the next five years because of market maturity and the competition that is arising from cellular handsets that offer multimedia capabilities.
At the end of 2008, for instance, market growth dipped below 10 percent for the first time since the category’s inception, In-Stat estimates.
“Revenue for portable media players and MP3 players peaked in 2008 at $21.6 billion and will decline annually through 2012,” the research firm says.
Manufacturers are adding Wi-Fi wireless connectivity to the devices, but this won’t be enough to revitalize the market place, says In-Stat.
