Hong Kong - The vast majority of Chinese MP3 player manufacturers plan to lower prices in 2007, as global demand is expected to increase by 20% over last year, according to market research firm Global Sources' China Sourcing Report.

Greater China accounted for 52% of global MP3 player production in 2006, and is the region where Apple's iPods are produced. Of 54 Chinese MP3 player manufacturers surveyed, 53% expect to cut prices by 10% or less in 2007; 19% expect 10-20% cuts; and 11% see MP3 player prices falling 20% or more.

"The price of flash memory has steadily decreased, with the trend expected to continue for several years. This has reduced the production costs of flash-based MP3 players, which account for 66 percent of players globally," said Mark Saunderson, publisher of the Global Sources report.

Additionally, twenty-five percent of manufacturers surveyed by Global Sources expect their exports to increase by 50% to 75% this year, while 28% of companies expect increases of 25% to 50%; just 13% predict no change in exports.

Related Links:
http://biz.yahoo.com/prnews/070109/hktu001.html?.v=46
http://tinyurl.com/v5k9j (MP3 player report)