Media player prices set to tumble

Consumers can expect prices of portable media players to fall this year, new research predicts.

According to the latest China Sourcing report from Global Sources, 83 per cent of MP3 player suppliers based in Greater China plan to lower prices in 2007. 

The study of 54 manufacturers found that just over half expect to cut prices by 10 per cent or less, while 19 per cent foresee price decreases of 10 to 20 per cent. Some 11 per cent of respondents expect prices to fall 20 per cent or more.

Mark Saunderson, publisher of the Global Sources report, said: "The price of Flash memory has steadily decreased, and this trend is expected to continue for several years.

"This has reduced the production costs of Flash-based MP3 players, which account for 66 per cent of players globally."

The report estimates that global demand for MP3 players will increase by 20 per cent year-on-year in 2007. Manufacturers in Greater China plan to boost 2007 exports to meet this demand.

A quarter of manufacturers surveyed expect exports to increase by 50 to 75 per cent, while 28 per cent predicted increases of 25 to 50 per cent.

The report also showed that Greater China manufacturers are increasing their compliance with intellectual property rights in order to access US and European markets. Among the most popular licensors are Sisvel, Thomson and Microsoft.

Greater China accounted for 52 per cent of global MP3 player production in 2006, according to the study.