[January 23, 2006]

The MP3 Player is Likely to Become the Next Standard Configuration of Mobile Phones in China

DUBLIN, Ireland --(Business Wire)-- Jan. 23, 2006 -- Research and Markets (http://www.researchandmarkets.com/reports/c31337) has announced the addition of China's Multimedia (Music & Video) Mobile Handset Market Study in 2005 to their offering.

Multimedia handsets refer to mobile phones capable of obtaining and handling data, including such functions as Text, Graphics, Image, Animation, Audio and Video, in addition to voice services. The handset industry has undergone three typical stages in its development, characterized by the upgrading of multimedia functions. At least another two upgrading stages are expected in the near future. Mobile phones will gradually turn from a communication tool to a multimedia terminal.

Development Stages of Multimedia Handsets

1. Chord ring tones were applied in handsets (2001- 2002), which led to the first handset upgrading tide, with monotonous tones replaced by chord;

2. Color screen replaced conventional black-and-white (2002-2003), offering users an easy-to-use graphic interface, which marked the beginning of the second development upsurge.

3. Camera was integrated on the handset (2003-2004), serving as one of the symbols of high-end products, ushering in the third golden era of development.

4. MP3 player-embedded handsets (2005 -2006) led to competition for storage capacity and battery lifespan, which characterized the fourth tide of development

5. Application of video functions (after 2006) is expected to be gradually improved, so that the performance of the handset (camera and video playback) will reach an unprecedented level. During the fifth development stage, handsets of DV, MP4, stream media or TV is likely to be an option for users.

At the beginning of 2005, the market share of MP3 phones accounted for only 7.5 percent, compared with the 17 percent at the end of the year. According to Pday Research, the complete sale volume would touch 15 million. The year 2006 will see a burst of growth in the music phone industry. The development of music phones remains only a step through the multimedia handset development as a whole. The focus is bound to shift to the video field and the next bestseller in the market will be DV handsets, MP4 handsets, TV and game phones.

Multimedia will no longer be the exclusive function of high-end handsets but the standard configuration for mainstream handsets in the future. The main reason is that the cost to add these multimedia functions is becoming lower and lower. As soon as the cost declines to below 10 dollars, users will accept it completely and consider it worthy of purchase. Color screen, chord ring tones and cameras have all become standard configuration and the MP3 player is most likely to become the next standard configuration of mobile phones.

This report looks at the following key topics:

-- Multimedia Handsets

-- Chord Handsets

-- FM Handsets

-- MP3 Handsets

-- DC Handsets

-- DV Handsets

-- MP4 Handsets

-- Stream Media Handsets

-- TV Handsets

-- Game Handsets

-- Analysis of consumer recognition of multimedia handsets

Companies mentioned:

-- Yamaha

-- OKI

-- ROHM

-- NEC

-- Philips

-- Sanyo

-- TMicroelectronics

-- MACRONIX

-- FANGTEK

-- Primax Electronics

-- Premierimage

-- Chicony Electronics

-- Tekom Technologies

-- Liteon Semiconductor

-- Cowell World Optech

-- Samsung

-- OmniVision

-- Agilent

-- Micron

-- ST Microelectronics

-- IC-Media Technology

-- PixArt Technologies

-- ElecVision

-- TransChip

-- Sony

-- Panasonic

-- Sharp

-- Fuji

-- Mitsubishi Motor

-- Core Logic

-- Mtekvision

-- Renesas

-- Vimicro

-- Anyka Cayman

-- MediaTek

-- Intel

-- Qualcomm

-- Realnetworks

-- Packet video

-- Funinhand Player

For more information visit http://www.researchandmarkets.com/reports/c31337

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