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Chinese MP3 makers to cut prices in 2007

Posted: 11 Jan 2007     Print Version  Bookmark and Share

Keywords:Global Sources  MP3 players  flash 

Eighty-three per cent of Greater China MP3 suppliers will lower their product prices this year, according to business-to-business media company Global Sources in its China Sourcing Report: MP3 Players. Of the 54 MP3 player makers surveyed, 53 per cent expect to cut prices by 10 per cent or less, 19 per cent eye price decreases of 10 to 20 per cent, while 11 per cent expect prices to fall 20 per cent or more.

"The price of flash memory has steadily decreased, with the trend expected to continue for several years," said Mark Saunderson, publisher of the Global Sources report. "This has reduced the production costs of flash-based MP3 players, which account for 66 per cent of players globally."

Greater China manufacturers also plan to boost their exports to meet the 20 per cent y-o-y global demand for MP3 players. Twenty-five per cent of the manufacturers project a 50-75 per cent export growth for 2007.

Meanwhile, 28 per cent of the manufacturers plan to increase exports by 25-50 per cent and another 28 per cent will increase exports by less than 25 per cent. Only 13 per cent of the manufacturers will not change their export growth level.

To gain further inroads in the U.S. and European markets, Greater China manufacturers are increasing their compliance with intellectual property rights.

Meanwhile, flash-based MP3 players with 8-10GB of storage capacity are being developed in the region. Hard drive-based players on the other hand are available with 20-60GB capacity. Last year, Greater China manufacturers accounted for 52 per cent of global MP3 player production.

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