CCID Consulting: PMP Players Attain a 300,800 Sales Volume in China 2007Q3; Revenue at RMB 524 Million

CCID Consulting: PMP Players Attain a 300,800 Sales Volume in China 2007Q3; Revenue at RMB 524 Million

BEIJING, Nov. 14 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on the 2007Q3 China PMP market.

In the Research Report on China's PMP Market in the 3rd Quarter of 2007 the sales volume of PMPs in China was 300,800 with a sales value at RMB 524 million. CCID Consulting forecasts that the total sales volume of PMPs in China will top 1.2 million in 2007. China's PMP market has been showing several trends.

The brand structure of the PMP market changed with the falling market share of NEWMAN

Table 1 Brand structure of China's PMP market in 2007Q3

2007Q2 2007Q2 2007Q3 2007Q3
Rank Brand Sales volume Market Sales Market Quarterly
(10,000) share volume share growth rate
(%) (10,000) (%)
1 AIGO 8.27 26.7% 7.58 25.2% -8.3%
2 Changhong
Zarva 4.26 13.7% 4.45 14.8% 4.5%
3 NEWMAN 5.77 18.6% 3.69 12.3% -36.0%
4 DEC ZHONGHENG 2.22 7.1% 1.80 6.0% -18.9%
5 MSI 1.60 5.2% 1.76 5.8% 10.0%
Others 8.91 28.7% 10.80 35.9% 21.2%
Total 31.03 100.0% 30.08 100.0% -3.1%

Source: CCID Consulting; Nov. 2007

Despite strong competition and a falling profit margin in China's PMP market, domestic brands still held the top five position for largest sales volume in the 3rd Quarter of 2007. AIGO, Changhong Zarva and NEWMAN have been developing independently and are equally competitive. With respect to the market structure in the second quarter of 2007, NEWMAN was overtaken by Changhong Zarva in the third quarter and its market position dropped to third place.

The survey data of CCID Consulting shows that, in the 3rd quarter of 2007, AIGO took 25.2% of the market (the largest share of the market by one company) owing to its high brand awareness, national gift campaign and its advantages in the gift market business. Changhong Zarva had a satisfying performance in the third quarter with a promoted market position and its supporter (Changhong) having no advantages when compared with NEWMAN and AIGO. As the IT flagship enterprise, Changhong Zarva's digital services are supported by Changhong Group, with an emphasis on optimum resources and high product quality. In this quarter, its market share was 14.8%.

More large screens were released in this quarter, with about 70% of the products sold having screens above 3.5".

Figure 1 China's PMP market structure in 2007Q3 by screen size

http://www.ccidconsulting.com/upload/12345.jpg

Source: CCID Consulting; Nov. 2007

In the 3rd quarter of 2007, in China's PMP market, flash PMP players most common range was between 2.5" and 3.0" products, with hard disk PMP players mostly between 3.5" and 4.3" products. PMP players above 3.5" comprised nearly 70% of the PMP players sold.

The price of large-screen PMPs is falling continuously due to the entrance of more manufacturers and the intensified market competition. Products with 3.5", 4.0" and 4.3" screens have become the mainstream.

The status of large-capacity PMP players is being promoted and hard disk PMP players dominate the market

Flash PMP players are in an awkward position owing to their high cost, small market demand and strong competition. On the one hand, flash PMP players are competing with large-screen and large-capacity video MP3 players; on the other hand, they have a less competitive price and less capacity than hard disk PMP players. Thus hard disk PMP players dominated China's PMP market and their share reached 71.1% of the products sold.

As to China's PMP market structure by capacity in the 3rd quarter of 2007, the market share of the PMP players in 1G, 20G, 30G and 80G were all above 10% respectively. Hard disk PMP player in 120G and more saw a rising market share after such brands as Changhong Zarva, AIGO and Archos released their large- capacity hard disk PMP players.

Table 2 China's PMP market structure in 2007Q3 by capacity (1)

Product model Product capacity Sales volume Market share
(10,000) (%)
Flash-PMP <512M 0.31 1.1%
1G 4.91 16.2%
2G 1.85 6.2%
4G 0.58 1.9%
Others 1.04 3.5%
Total 8.69 28.9%
HD-PMP 20G 4.03 13.4%
30G 3.47 11.5%
40G 2.49 8.3%
60G 2.18 7.2%
80G 4.73 15.7%
120G 1.49 5.0%
100G 0.95 3.2%
160G 0.76 2.5%
Others 1.29 4.3%
Total 21.39 71.1%
Total 30.08 100.0%

Source: CCID Consulting; Nov. 2007

Note:
(1) Considering that there is no preferred industry standard for MP3,
MP4 or even PMP, CCID Consulting strictly differentiated between video
MP3 and PMP in August 2007. According to user demand, product
technology and functions, defined video MP3 and PMP in detail, and
did not utilize the "MP4" category in order to avoid confusion
with less clearly defined concepts, like MP5 and MP6.

PMP player features: supports at least 2 MPEG-4 formats; VOB (DVD) and DAT (VCD) can be copied directly and played without transformation; screen size above 2"; supports 24 frames/sec, and their basic function is to play video files. As to the so-called "MP5" and "MP6," the basic function is the same as that of the PMP but with more support for different video formats, such as MPEG-1, MPEG-2 and MPEG-4. MP5 and MP6 core functions and know-how are basically the same as that of the PMP.

Video MP3 and pure music MP3 go by the general name of "MP3 players." Their basic function is to play audio files. Video MP3 players can also play video, but the ability to play video files is quite limited.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

For more information, please contact:

Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.

CONTACT: Cynthia Liu, Coordinating Manager of CCID Consulting Co., Ltd.,
+86-10-8855-9080, or liuyan@ccidconsulting.com

Web Site: http://www.ccidconsulting.com/upload/12345.jpg

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