China PMP exportation and the domestic market
2008-08-06

                                       China PMP exportation and the domestic market

The China PMP industry to the world China has played a critical role in the global PMP market. It is showed that China currently accounts for an estimated 30 percent of the worldwide shipment of portable media players. With makers keen to boost product development and production to meet rising worldwide demand, the region is poised to continue being a major manufacturing hub for PMPs worldwide. The main export market for PMPs from China is Europe. Secondary markets include the United States, the Middle East and Asia. According to a report before, the total 2006 export sales of the companies featured reached $626.7 million, and averages at a little more than $14 million. Makers' annual export sales in 2006 varied anywhere from $100,000 to more than $80 million. And, in 2007, more than 40 percent of Chinese PMP companies expected that the growth of their export business can exceed 20 percent. To prepare for a surge in export shipment volumes, more than 70 percent of makers plan to increase their production capacity by at least 20 percent.

To appealing to the worldwide development and demands, we can see some trends in China’s PMP industry: 1. Because of the result of decreasing coast, particularly of hard disks and flash memory and heightened competition with and beyond the region, the PMP prices will reduce. The price of export flash PMPs will decline by as much as 10 percent. And the price of HDD PMPs will decline by 3 percent to 5 percent.

2. Trends toward feature integration will fast-track the incorporation of multiple formats, digital cameras, radios and games. Makers will also bolster wireless connectivity through Wi-Fi or Bluetooth. 3. The main kind of China’s PMP exportation is still the Flash PMP, but the HDD PMP will catch up with in production and exports.

4. The products storage capacity will expand in the coming days. Now, the storage of flash PMP has reached as much as 4GB capacity, and some HDD PMPs can have as much as 160GB.The screen of PMP will continue to make larger, and the touch-screen will dominate the screen style market. 5. The screen of PMP will continue to make larger, and the touch-screen will dominate the screen style market. The china PMP market Affected by the vigorous supply and demand, China’s PMP player market has kept up its rapid development in 2007. And by the increase of chips supporting RMVB format and related products, the China PMP market was highlighted doubtlessly. In 2007, the PMP market sales were about 2.99 million units, of which, 2.38 million units were for the sales of flash memory, amounting to 79.5 percent.

According to the report of CCID, China‘s PMP player market has stepped up to the expressway. Here are some figures from CCID in order to elaborate the development of China PMP market: 1. the sale volume and growth, 2005-2007 The sales volume of China’s PMP player market reached 1.212 million sets, up 129.1% over 2006; the sales revenue reached 2.26 billion Yuan, up 85.5% over 2006.

2. the market shares of domestic brands, 2004-2007 China’s PMP market entered its initial stage in 2005, and in the last years, the domestic brands of Portable media player have successfully occupied a large percent of the market. In 2007, the manufacturers such as Aigo, Newsmy and ZARVA fully used their advantages to extend their market share.

3. The average price transformation PMP prices are declining as a result of decreasing costs, particularly of hard disks and flash memory, and heightened competition within and beyond the region. Price competition became the major driving force in the PMP market in 2007.

4. the market occupancy rate of different storage capacity products In the flash PMP market, the share of products with 256M or less storage capacity is continuing shrinking. And the 512M flash PMP has quitted the market’s mainstream. Because of reasonable prices, 1G flash memory PMP players accounted for 16.2%. 2G and 4G player prices will reduce and take the position currently belonging to 1G products. In the HDD PMP market, the market share of 20-80G players dominate the market. And the products with capacity from 30G to 80G have the fastest growth rate.

The development prospect of China PMP market China’s portable media player market has entered a expressway in 2007, and the development will grow faster and faster. And the consumers’ demands will enhance rapidly. Facing to this problem, enterprises’ market strategies, supply-demand balance of upstream resources, development of product technologies and functions will be taken into account. To address this issue, CCID make some forecasts of the sales volume growth and sales revenue growth of china’s PMP market from 2008 to 2012.

The sale volume growth 

The sales revenue growth