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China's 1H08 MP3 Player Market Down
September 3,
2008China's 1H 2008 MP3 player
shipments reached 2.5 million, down 43.8% YOY, while revenues reached 12.2
million, down 43.6% YOY. MP3 player outlook remains weak, but vendors are
competing on product features rather than on price.
|
MP3 Player |
1Q07 |
2Q07 |
3Q07 |
4Q07 |
1Q08 |
2Q08 |
|
Shipments (thousands) |
2,086.7 |
2,370.6 |
2,101.9 |
1,754.4 |
1,373.7 |
1,132.9 |
|
Shipment QOQ
Growth (%) |
-0.50% |
13.60% |
-11.33% |
-16.54% |
-21.70% |
-17.53% |
|
Revenues (millions
Yuan) |
10.21 |
11.46 |
10.35 |
8.61 |
6.77 |
5.46 |
|
Revenue QOQ
Growth (%) |
-2.9% |
12.22% |
-9.67% |
-16.82% |
-21.32% |
-19.40% |
source: ccid
consulting, July 2008
Note: MP3 players exclude PMPs (portable
media players that are not MP3-based). For PMP TrendWatch, see
1H08 PMP Growth Declines In China, But Outlook Positive. Combined 1H08
shipments of MP3 players and PMPs reached 3.07 million, down 39.19% YOY,
while revenues reached 1.99 billion Yuan, down 40.51% YOY.
|
MP3 Player
and PMP |
1H06 |
1H07 |
1H08 |
|
Shipments ((thousands) |
3,516.9 |
5,046.4 |
3,068.7 |
|
Change YOY
(%) |
–– |
43.49% |
-39.19% |
source: ccid
consulting, July 2008
For MP3 players, flash memory types
were the mainstream, with 2GB and 4GB segments increasing rapidly.
Flash memory MP3 players continue to dominate in successive quarters. Flash
memory 128MB, 256MB and 512MB steadily receded, replaced by GB capacities.
1GB had steady growth, while 2GB and 4GB increased significantly. Flash
memory capacities will continue to increase, while HD will remain small, but
with more capacity, popular in the 5GB and 6GB capacities.
|
MP3 Shipment
Share by Type |
1Q07 |
2Q07 |
3Q07 |
4Q07 |
1Q08 |
2Q08 |
|
Flash 128MB |
0.13% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
|
Flash 256MB |
4.08% |
2.10% |
1.12% |
0.88% |
0.62% |
0.15% |
|
Flash 512MB |
22.63% |
11.41% |
10.44% |
9.16% |
7.02% |
3.88% |
|
Flash 1GB |
52.67% |
50.24% |
53.05% |
55.66% |
54.26% |
47.67% |
|
Flash 2GB |
10.06% |
22.79% |
22.58% |
22.52% |
25.91% |
34.44% |
|
Flash 4GB |
2.17% |
5.09% |
4.97% |
4.99% |
5.46% |
7.14% |
|
Flash 8GB |
0.34% |
0.93% |
1.01% |
1.12% |
1.07% |
1.18% |
|
Flash Other |
7.50% |
7.05% |
5.98% |
5.23% |
5.22% |
5.24% |
|
HD All |
0.42% |
0.39% |
0.85% |
0.43% |
0.43% |
0.31% |
|
Total |
100% |
100% |
100% |
100% |
100% |
100% |
source: ccid
consulting, July 2008
Low-end MP3 players are the most popular, with those below 800 Yuan
taking 90% shipment share.
Midrange to low-end MP3 players, priced below 800 Yuan, is the mainstream in
China. MP3 players priced below 400 Yuan accounts for 40% of total MP3
player shipment share. As prices drop, these players will have increased
capacities. High-end MP3 players are limited to multinational and some
Chinese vendors, but they currently lack sufficient differentiation with
lower-end players, and their shares decline.
|
MP3 Shipment
Share by Price Segment |
1Q07 |
2Q07 |
3Q07 |
4Q07 |
1Q08 |
2Q08 |
|
Below 400
Yuan |
37.1% |
46.7% |
43.4% |
43.6% |
41.5% |
44.4% |
|
400 – 500
Yuan |
30.1% |
22.9% |
23.6% |
23.4% |
24.7% |
22.1% |
|
500 – 800
Yuan |
24.0% |
22.1% |
24.6% |
23.5% |
24.0% |
23.7% |
|
800 – 1,000
Yuan |
3.5% |
2.9% |
3.2% |
4.4% |
3.7% |
3.3% |
|
1,000 –
1,200 Yuan |
2.7% |
3.1% |
2.3% |
1.9% |
2.3% |
3.3% |
|
1,200 –
1,500 Yuan |
1.8% |
1.7% |
1.9% |
2.4% |
2.8% |
2.7% |
|
1,500 –
2,000 Yuan |
0.6% |
0.4% |
0.5% |
0.7% |
0.8% |
0.4% |
|
2,000 –
2,500 Yuan |
0.2% |
0.2% |
0.5% |
0.1% |
0.2% |
0.1% |
|
Total |
100% |
100% |
100% |
100% |
100% |
100% |
source: ccid
consulting, July 2008
2H08 TRENDS TO WATCH
MP3 players will continue to have weak growth.
Compact size, style, and audio quality will continue to be the themes for
2H08. For video MP3 players, products will emphasize large screens, many
product choices, and many entrenched brands. Vendor market positions will
hold steady.
However, MP3 player growth will be weak to negative, as substitute products
such as PMP, music mobile phones, and GPS will increasingly prevail.
Vendors compete on features and differentiation.
Nonetheless, vendors continue to offer more. For pure-audio MP3 players,
Samsung, Apple, and
OPPO continue to offer new and stylish products,
leveraging their brand, quality, and channels. For video MP3
players, Newman,
Ramos, and
Aigo focus on larger screen sizes, more
capacity, video formats, channels and services to be competitive.
Competition continues to shift towards more on differentiation and product,
rather than price.
Product sales will spread towards China's more rural Tier 3 and 4 cities;
and central and western regions.
MP3 players tend to be saturated in China's major Tier 1 and 2 cities. In
the search for continued growth opportunities, vendors will focus on
building channels in China's more rural areas, and first-tine buyers.
For more information
Please
contact us for these and
other China-related data, information and products.
Unless otherwise specified,
all information provided is sourced from CCID Consulting.
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