IDC: MP3 market is 'booming'
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Market research firm IDC reports that broad consumer acceptance of MP3 players is expected to grow the market from 12.5 million units sold last year to more than 50 million units in 2008 — a compound annual growth rate of 20%. IDC predicts the market will generate almost US$58 billion in revenues by 2008, and expects that Apple, which it describes as "a portable jukebox market leader", will see increased competition from vendors offering devices based on one-inch and smaller hard drives.
IDC described the portable and home CD player markets as "stagnating", and predicted only moderate growth of MP3 CD and MiniDisc-based players through 2008. The firm expects DVD players, gaming devices, DVRs and mobile phones that can play MP3s to lead unit shipments and revenue for the overall MP3 market in the years to come, offering "competitive substitutes" for devices that can play audio only.