According to the statistics of the CCID Consulting, the quantity of MP3 sold is estimated to reach 6.91 million which values ￥36.90 million at the end of 2006, while on the basis of the survey, the quantity of MP3 sold is 6.15 million in 2005 and 37.8 million in 2004. Therefore, as we can see, though the quantity sold witnesses increase in 2006 compared with the past two years, it is slowing down its pace. Wei Yuhuai, senior analyzer in the Consumer Electrics Department of CCID Consulting, attributes the phenomenon to the decreasing profit of MP3 market so that many manufacturers have moved their attention to the MP4 market which enjoys a relatively large profit potential. Meanwhile, the emergence of the Fuzhou Rockchips Electronics CO., Ltd as well as its operation mode is followed by many manufacturers so that the medium and large-screen MP3s spring up and activate the atmosphere of the MP3 market.

Famous Brands of MP3 Are More and More Popular

In 2006, according to the statistics, the MP3s made by professional manufacturers with core technologies become relatively popular. As it is indicated in the Investigation Report on IT Products in 2006 of the Computer World Magazine, the quantity of domestic MP3 brands has dropped to a few more than 100 from several hundred. Among them, no more than 20 are somewhat famous.

The MP3 market in 2006 is prosperous, of which nearly 70% is occupied by the MP3s made in China. According to the statistics of the SINO-MR, as far as retailing quantity is concerned, three MP3s made in China have occupied the first three positions in the MP3 market until now. Among them, Newman, relying on its rich product lines, unparalleled advantage in low price and the sales channels in third and fourth-class cities, takes 15.1% percent which enjoys the highest market share in quantity sold. Unibit, relying on its low price and extensive sales channels, is in the second place with the percentage of 11.3%. Aigo, which is an old brand, relying on its traditional market advantage on the industry, stays in the third position.

Samsung is the most popular foreign brand in the retailing market, while Apple iPod, another famous international brand, witnesses a slight decrease to the 10th in retailing market.

The MP3s under ￥500 Witness Hot Sales

According to the statistics of the CCID Consulting, with the overall decreasing of the price of MP3s, the low-grade MP3s under the price of ￥500 have gradually been the mainstream of the market which take a market share of 62.62%, while the medium and high-grade MP3s at ￥800—1000 which are only confined to few international and domestic brands, take a share of 24.21%. However, the medium and high-grade MP3s lack enough attractive points compared with the low-grade MP3s and are also pressed by the low-grade MP4s, so that their market share witnesses a slight decrease.

Large Screen MP3s Are Leading the Market

With the springing up of screen MP3s, the consumers are provided with a larger margin to choosing what they like. The screen of MP3 is keeping being broadened, from 1 inch to 1.5 inches to 1.8 inches, which also keeps changing the mainstream of the market. By applying the Rockchips, the large-screen MP3s, represented by the 1.8 inches ones, have gradually taken the dominant position in the MP3 market in 2006.

As far as the development of colorful screen MP3s, the MP3s in 1 inch, 1.1 inches, 1.2 inches and 1.5 inches have represented the mainstream of MP3 market one after another. According to the statistics of the CCID Consulting, the MP3s in 1.8 inches and with larger screens have emerged in the third quarter of 2005 and kept growing from then on.

As for the capacity of MP3s, the MP3s with 512MB capacity have replaced those with 25MB capacity and led the market with the share of 40.11%.

The Gross Sales Will Reach 40 Million in the Next Year

According to the statistics of CCID Consulting, the quantity sold of MP3s in 2007 will reach 7.677 million which values ￥40.195 million and the more than half of the MP3 market will be led by those with 1G capacity.

In the next year, the MP3 market will be further segmented and the products, brands and service will be upgraded to a higher position. MP3s with large screen, large capacity and playing video will still be the development direction of the MP3 market. In addition, the tone quality of MP3s will be greatly improved. The MP3 manufacturers will apply the DMB video and broadcasting function and GPS. However, it would cause inconvenience to MP3s if their screens are larger than 2.5 or 3 inches, so the manufacturers will try to attract more consumers by adding more recreational functions (like games), better video compatibility, support to RM, RMVB and Flash and photographing function to MP3s.