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EL SEGUNDO, CA – While growth in the overall consumer electronics equipment and related semiconductor markets is undergoing a slowdown, analysts at iSuppli Corp. say there is hope for more profitability for personal media players/MP3 players.
The OEM factory revenue CAGR for consumer electronics products will decelerate to 3.6% from 2007 to 2011, down from 8.9% between 2001 and 2006, the firm said. The CAGR for the consumer electronics-oriented semiconductor market will slow to 4.4% for the period between 2007 and 2011, down from 10.7% from 2001 through 2006.
Worldwide consumer-electronics product OEM factory revenue will rise to $393.4 billion in 2011, up from $349.9 billion in 2007. Associated semiconductor revenue will increase to $69.1 billion in 2011, up from $58.1 billion in 2007, according to iSuppli.
Despite the overall slowdown, mobile products are generating strong growth, with PMP/MP3 players leading the way, said the firm.
Global PMP/MP3 player unit shipments will rise to 268.6 million units in 2011, expanding at a CAGR of 13% from 128.7 million units in 2005, the company predicted. Global PMP/MP3 factory revenue will rise to $21.5 billion by 2011, growing at a CAGR of 7.4% from $14 billion in 2005.
According to the firm, the strong growth of the PMP/MP3 market is the result of increased Internet connectivity, growing content availability and declining prices for key components like NAND flash memory and system-on-chip (SoC) controllers.
iSuppli warned that PMPs/MP3s face rising competitive pressure from mobile phones, which are adopting music-playback. In 2007, music-enabled mobile phones will out-ship PMP/MP3 players by a factor of nearly 3:1, and by 2011, that gap will expand to 4.5:1, the firm said.
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