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High Prices and Limited Content Stunt HDD Growth

New data says that hard disk drive players will reach only 17 percent of U.S. online households by 2010.

Dallas, TX–High prices and limited video content will inhibit demand for hard disk drive portable multimedia players, which will reach only 17 percent of U.S. online households by 2010, according to new data from Parks Associates.

Competition from existing devices such as portable DVD players and mobile phones with multimedia functions will also limit adoption of hard disk drive (HDD)-based portable multimedia players, as reported in this new study, which estimates the cumulative U.S. shipments of these devices will reach 13 million units by 2010.

“The portable multimedia players (PMP) market will not experience the rapid growth typical of portable MP3 players,” said Harry Wang, research analyst at Parks Associates. “We anticipate a flatter adoption curve and lukewarm demand over the next two years, with meaningful increases in consumer interest by late 2007 or early 2008.”

Although the forecast for PMPs is not as upbeat as hoped, manufacturers could stimulate interest to some extent, according to Wang, by bundling unique video content with the device or by raising product awareness among consumers who are receptive to the concept of multimedia content on the go.

The study on which these findings are based, Portable Multimedia Players: Analysis and Forecasts probes market demand for PMPs, evaluates product and pricing strategies, analyzes market drivers and barriers, and estimates adoption rates and market potential over the next five years. Moreover, the report profiles key players in emerging market segments and features consumer data from the recently completed survey Mobile Entertainment Platforms and Services.

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