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Worldwide PMP-MP3 Player Market Slows

The growth rate of the once rapidly expanding Personal Media Player (PMP) or MP3 player market will slow considerably over the next five years, accord to a market study by In-Stat.

Now In-Stat estimates that the growth rate has dipped below 10 percent at the end of 2008 for the first time since the market's inception.

"Market maturity, a weak economy, and competition from other multimedia handheld devices -- primarily mobile phones -- are contributing to the slowdown in the global PMP/MP3 player market," says Stephanie Ethier, In-Stat analyst.

While consumers are starting to demand features, such as Wi-Fi on their devices, such enhanced functionality will not be enough to re-energize the historical shipment growth.

In-Stat's market study found the following:

- Worldwide PMP/MP3 player shipments will grow to 245 million units in 2012.

- By 2012, 21 percent of global PMP/MP3 player shipments will be Wi-Fi-enabled.

- Market revenue for PMP/MP3 players peaked in 2008 at $21.6 billion and will decline annually through 2012.

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