In a recent MP3 report, Cahners In-Stat Group forecasts the worldwide demand for MP3 flash memory will reach 5.2 million cards for 1999. Worldwide MP3 player shipments for 1999 are expected to reach 1.3 million units.

"Flash memory card suppliers have been waiting for a volume consumer market to take off," explained Jesse Huffman, senior analyst with Cahners In-StatGroup.

"The MP3 'music-mania' is a global phenomenon that has pushed the industry capacity beyond it's current limits. In fact, the excitement of the Diamond Rio success in the U.S. has almost masked-over the even hotter audio-frenzy in the offshore markets."

Korea is looming as an export power for MP3 and is expected to export 300,000 units in 1999. The wave of MP3 exports coming out of Korea will go to Japan first, then to the Americas. Japan is expected to consume 60% of the exports coming from Korea this fall.

1999 is really the first year of the MP3 market phenomenon, and many changes involving products, manufacturing and geographic consumption are expected in 2000. The flash memory market will mostly be divided between MultiMediaCard and SmartMedia. Due to the low cost nature of such consumer products, we will see manufacturing showing-up in China and probably Mexico.

The report, Flash Memory, Facing the Music, #FM9907TA, discusses the current technology in today's market and takes a global look at the MP3Music Player and MP3 Flash Card markets.

Cahners In-Stat Group
http://www.cahnersinstat.com