Mobile Phone MP3 Players Could Challenge iPod

Continental says that although MP3 compatible handsets are more recent technology and at present a less common feature, present on just 23% of phones, similar numbers (15%) have listened to their mobile phone MP3 in the last 12 months as have used WAP.

MP3 ownership and usage is significantly higher amongst the young, with those in the 16-24 year old age group more likely to have an MP3 (47%) and to have listened to it (39%) than older mobile phone owners.

Over half of users were satisfied with the ease of use of their phones as MP3 players, although Continental says that at this point in time customers are less likely to be critical as the features are relatively new.

Once the market becomes bigger and comparisons are made to dedicated MP3 players, satisfaction levels with ease of use and sound quality will need to improve.

However, the majority of mobile owners are not yet using their phones as a replacement for a standalone MP3 player. Two thirds (67%) of MP3 listeners also owned a separate MP3 player such as an iPod.

Continental says that as the sound quality, user friendliness (such as having dedicated external buttons, and a more advanced search facility) and storage capacity of MP3s improve to a point where they are comparable to dedicated players, it expects the numbers using their mobile phone as their primary portable music device to grow.

All non-users of specific phone features were asked how likely they were to do it in the following 12 months. More than one in ten (of those that had not listened to an MP3 on their phone) stated that they were more likely to do so.

Interest on listening to MP3s on a mobile phone was particularly high amongst the 25-34 group, with over a quarter (27%) stating that they were likely to do so.

In August, In-Stat released a report which said that portable media player sales will reach 5 million units by the end of 2006, up from just 390,000 only two years ago (see Portable Media Player Market To Grow).