Why ipod sales are slowing and Apple’s pushing for worldwide presence for iPhone

From Portio Research as a follow up to missing iPhones and lower iPod growth (only 5%) in Q4 2007.

After six years of steady
decline the global music market is set to grow again spurred on by
increased consumption of digital music through multiple channels with
annual revenues predicted to reach USD$38.8 billion by 2011.

In
2007 over half of the 1 billion mobile handsets shipped will have music
playing capabilities
, so while worldwide sales of stand alone MP3 music
devices will continue to grow, sales will level out by 2012, by which
time MP3-enabled mobile handsets will outnumber stand alone MP3 players
by approximately 5 to 1.


Over-the-air (OTA) music downloads have the potential to be one of the most successful non-voice services
after SMS, providing prices remain attractive to consumers.

This battle will take place in the wealthiest and
biggest world markets, Japan and South Korea, Western Europe, North
America, Mexico, Brazil, South Africa, Hong Kong, Singapore, Australia,
New Zealand, Russia and more with some of the biggest youth-sector
brands such as McDonalds,
Coca-Cola, Pepsi, Nike, Reebok and Adidas possibly involved in
sponsoring and advertising deals.

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