Chinese MP3 makers to cut prices in 2007

Most MP3 gear suppliers in Greater China plan to lower prices this year as the cost of flash memory falls, a China-focused media company said on Tuesday citing a survey of 54 manufacturers.

Also this year, manufacturers expected global demand for MP3 digital music players to rise 20 percent versus 2006, Global Sources said.

The survey showed that 83 percent of the manufacturers polled planned to cut prices — 53 percent by up to a tenth, 19 percent by up to a fifth, and 11 percent by more than a fifth.

Greater China accounted for 52 percent of global MP3 Player production in 2006, the survey said.

“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,” Mark Saunderson, publisher of the Global Sources report, was quoted as saying.

Among the most popular licensors, the group said, was Microsoft. Korean firms Hynix Semiconductor and Samsung were the major suppliers of flash memory to most of the manufacturers profiled.

Manufacturers order hard drives from Hitachi, Toshiba, Fujitsu, Seagate and Samsung, according to the report.