China MP3 Market Contracts
November 28, 2007 – 12:39 pmIf you're new here, you may want to subscribe to our RSS feed. Thanks for visiting Planet Gadgets!
The MP3 market in China is not booming. The number of units shipped and profits are both down, according to Chinese Consulting company CCID Consulting. The market is contracting due to the fact that single purpose MP3 players are no longer in fashion.
The sales revenue of China’s pure audio MP3 market descended 14.29% over 2007Q2. This also reveals that the profit room for pure audio MP3 has more and more slimmed down.
Manufacturers have adopted promotions and depreciated prices to sell MP3s during the summer vacation. However, in August 2007, price increases were popular in China’s pure audio MP3 market. The main factors leading to price increases are as follows: First of all, the relationship between supply and demand changed. The tense supply of flash memory chips directly lead to demand outpacing supply and price increases ensued. Secondly, the slender profit margin from MP3 players drove manufacturers to initiate price increases in order to gain more profit.
Samsung, Apple, OPPO, UNIBIT and SONY are the leading manufacturers. The bad news is, the market will continue to shrink.
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