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Portable Multimedia Device Usage in Japan

Fueled by market drivers, such as inexpensive flash-based players, growing broadband penetration, and the increasing availability of affordable music and video online, the market for portable media equipment will see strong growth in Japan over the next several years, according to In-Stat.

Music-enabled cell phones, however, may cut into this evolving market, the high-tech market research firm says. The latest assessment assumes that the Japanese mobile phone service provider marketing efforts can continue to effectively compete with the consumer electronics companies.

"While video capable, dedicated PMP/MP3 players seem safe from multimedia cell phone competition, there is a significant opportunity for cellular operators to capture those consumers who are considering audio-only MP3 players" says Alice Zhang, In-Stat analyst.

The research entitled "Portable Music & Multimedia Market In Japan" covers the evolving market for all portable multimedia equipment. It provides forecasts for Japanese portable MP3 players, portable media players (PMPs), and portable DVD players. For portable audio-only MP3 players and PMPs, both flash-based and HDD-based players are included. Results of a survey of Japanese consumers are also included.

In-Stat's market study found the following:

- More than a quarter of the respondents to an In-Stat survey of Japanese consumers would like to use a multimedia mobile phone as a substitute for a multimedia player.

- Japanese PMP/MP3/PDP player market retail volume is expected to reach nearly 1.5 million units by 2011, up from 760,000 units in 2007.

- Consumer interest in video will constrain the growth of audio-only MP3 players in Japan. As PMP prices drop, more Japanese consumers will choose to purchase a PMP.

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