Worldwide Semiconductor Market for Portable Media Players Is Expected to Decline at a Compound Annual Growth Rate of -9.1% Through 2013, IDC Reveals

FRAMINGHAM, Mass. – April 20, 2009 – The worldwide semiconductor market for portable media players (PMPs) is poised to drop significantly from $7.5 billion in 2008 to $4.6 billion in 2013, representing a negative compound annual growth rate (CAGR) of -9%, according to a new forecast from IDC. A mature market, the economic slowdown, growing similarity with mobile phones and mobile Internet devices (MIDs), and inevitable cannibalization all contribute to the shrinking semiconductor opportunity in PMPs. Additionally, PMPs will no longer be the largest market for NAND flash memory.

While revenue for most of the semiconductor components will decline in line with the total decline in PMP unit shipments, wireless connectivity semiconductors will exhibit modest growth, driven by the increase in attach rate for FM, WLAN, and Bluetooth radios.

"As PMPs have grown in capabilities, the dividing line has blurred between multimedia phones and MIDs," said Ajit Deosthali, research manager for Short Range Wireless Semiconductors at IDC. "Moving forward, one should expect the semiconductor players to focus on the larger multimedia phones and growing opportunity in MIDs."

IDC's study, Worldwide Portable Media Player Semiconductor 2009–2013 Forecast (Doc #217643), provides an analysis of the worldwide semiconductor market for PMPs by device type, from 2009 to 2013. The study also forecasts the semiconductor bill of materials for audio-only and video-capable PMPs, and the PMP NAND flash revenue and shipments by capacity.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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