Music enabled handsets 54% of sales by 2009

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Sep 23 2004

Cellular Music Decks (CMDs) are the next 3G opportunity beyond still and video imaging, while total music-enabled device sales will increase to 54 per cent of global handset sales by 2009, says Strategy Analytics.

The researchers have found that traditional GSM players are establishing an early brand position in CMDs - dedicated feature phones with mobile music as the centerpiece of functionality - clearly outpacing their Asian counterparts who are absorbed in the imaging device frenzy. Nokia, with its 3300 and 5510 handsets, and Motorola, with its aggressive pursuit of music-focused alliances with MTV and Apple, illustrate the importance that both device segmentation and branded music content will play in the emerging music-enabled device market.

"Music has strong emotive value which rivals that of imaging," said analyst Eddie Tapiero. "As we move towards broad based music download services, vendors must walk the thin line between engaging 'Sporadic Downloaders' with engaging feature sets and simultaneously limiting carrier exposure to expensive customer support requirements."

Nonetheless, sporadic downloaders encompass the wider market opportunity in the long term. Tech savvy "digital musicphiles" are already indicating critical feature "must haves" for CMDs and music enabled feature phones.

"Music will be a 'bridesmaid' value-add mostly found on converged devices and high-end camera phones until 3G services are more widely deployed," said Chris Ambrosio, director of the wireless devices strategies service. Then it is up to device vendors to make significant improvements in sound quality reproduction, storage capacity, wireless-fixed connectivity, and the user interface to make mobile music a broader reality."

The MP3 format is to remain a requisite format in the mobile market due to strengths in the wired broadband domain.