MP4 performs well in market

USA. (SANEPR.com) September 25, 2007 -- Since the first MP4 came into market, MP4 seems to have been under great pressure from its rivals including video MP3, smart-phone, psp and so on.

To survive in the market, MP4 manufacturers have been spending accelerated efforts to advance their products. The MP4 product line has been expanded a lot. In addition to ordinary ones, high-end MP4 players with improved and multiplied functions are also available in market.

The player market is developing rapidly and the market of MP4 has been consolidated and expanded due to continuous innovations in industry. A report of Chinese MP4 player market in the first quarter shows that 478,800 sets of MP4 worth 708 million were sold in the first three months of this year. The total sales volume in Chinese market is predicted to top 2 million sets this year.

Price is still the first concern of consumers. Statistics from the Report of the Development of China MP4 Market in 2006 released by Analysys International suggest that RMB500-1000 MP4 sold the best with a market share of 45.23 percent while RMB1000-1500 MP4 held a share of 18.09 percent. The higher the price was, the smaller the sales volume was.

To view the market from an overall perspective, the low-price flash MP4 dominated the market with a share of more than 80 percent. It is also likely to win a share of the low-end and mid-range market.

Decreases in price do not mean weakened functions. On the contrary, the fierce competition in MP4 market has led to accelerated technological update and diversified functions. It is widely believed that the video decoding technology will be diversified while the competitiveness of MP4 will be dramatically enhanced by the application of hardware decoding instead of software decoding. In addition, equipped with more durable batteries, MP4 will face smaller threat from entertainment consumer electronic products such as mobile phone. The advance of widescreen film technology will also be taken into consideration in MP4 design in future.

Source: http://www.chinaed.com.cn/no13/newsmore/200709/13/t20070913_217053.shtml

Translated and edited by www.tradestead.com

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