Technological Change - MP3 Players in Rapid Decline

A nice example here to help explain and illustrate the impact of technological change on the product life cycle. This article in the Telegraph reports a 20% decline in UK sales of MP3 players during 2012 compared with 2011. Total sales in 2012 were £381million, a fall of £110million. According to one Mintel market forecast, annual sales could slump further to around £25million within the next 5 years as the market penetration of smartphones continues to make the MP3 player less relevant to consumers.

A quote from a technology analyst helps explain the decline of the MP3 player

“The convenience of a smartphone is greater than an MP3 player because it is always with someone. It also provides more choice of mobile music because someone can play back their own music – as they can on a MP3 player – but they can also access other music services like Last FM or Spotify. Therefore there is a greater choice of music available.”