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End of the Ipod Era

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Submitted By abhinavajain
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Sales of Apple's music player are heading for a long-term decline that could affect digital music downloads. Can connectivity alter that?
This month, Apple released an upgrade to its iPod line. But amid the hype surrounding its careful marketing and intentional secrecy about the content of the launch, a different truth is emerging: that we are seeing the twilight of the stand-alone digital music player (DMP), a product category little more than 10 years old.
That does not mean digital music players will vanish. Quite the opposite: the sector is still growing. Increasingly, though, the products have some sort of connectivity — whether wi-fi, mobile phone, Bluetooth or all three.
But if you look closely, signs the stand-alone player is in decline are all around. The first, and most obvious, was Apple's announcement in its latest quarterly results that iPod sales fell year-on-year for the first time since the product's launch in October 2001. As the iPod dominates the market for DMPs, any drop in its sales indicates a fall in the market.
Next is the news that in the last week of August, Sony's Walkman DMPs outsold the iPod in Japan for the first time in four years. But that was against a background where sales of DMPs fell by 13.5 per cent for the fifth month in a row; and Sony forecast that it would sell 6.7 million units in the year to March 2010 — compared to 7 million sold the previous year.
A forecast by In-Stat (in-stat.com), a consumer-analysis company, suggests the market for stand-alone DMPs peaked in value last year at $21.8 billion and "will slow considerably over the next five years". It believes the market's growth fell below 10 per cent at the end of 2008 for the first time since the Saehan MPMan player, able to store 32MB of data, went on sale in 1998. Shortly after, Diamond Multimedia started selling the Rio PMP300.
That, in turn, carries serious

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