Portable Media Player Market to Hit 5 Million by Year-End

SCOTTSDALE, August 9: A
new report from Arizona-based In-Stat predicts that the U.S. market for
Portable Media Players (PMP) will hit 5 million by the end of the year, driven
in part by the popularity of the Video iPod.

While Apple’s device is
not officially classed as a PMP, In-Stat says that it has made consumers more
aware of portable video devices. In a survey of consumers, 75 percent of all
respondents have some level of familiarity with PMPs. Over the next year,
In-Stat expects that improvements in video compression technology, download
video content sites and wireless communications will help drive the PMP market,
which stood at about 390,000 two years ago.

"Despite the fact
that PMP shipments are finally gaining traction, suppliers and manufacturers
continue to face challenges," says Stephanie Ethier, an In-Stat analyst.
"PMPs will continue to compete with other portable devices offering similar
functionality, such as notebook computers, portable DVD players, handheld
gaming products and other mobile devices."