Apparently, Apple couldn’t have picked a better time to unveil a musical digital device like the iPod, its MP3 music player that holds up to 1,000 songs.
According to the
research group, interest in new digital audio playback applications and products is increasing.
The research firm finds that even though most digital audio playback products have only been available for a couple of years, they have already succeeded in selling millions of units. While portable digital music players have been the best-selling digital audio application, other products like digital audio receivers, digital jukeboxes, automobile stereos, cellular phones and even personal digital assistants (PDAs) will drive future product sales, according to Mike Paxton, a senior analyst with In-Stat.
In-Stat has also found in its “Digital Audio Update: MP3 Applications Proliferate” report that:
Worldwide portable digital music player unit shipments will grow from 2.4 million in 2000 to over 9 million in 2005;
Margins for most digital audio products are slim and manufacturing scale is important;
Though demand for new console-type digital music products, like digital audio receivers and digital audio jukeboxes, have been low, this market is forecasted to grow significantly through 2005.