Growing market in peripherals & accessories for portable audiovisual devices

The wild success portable audiovisual entertainment devices have enjoyed has created a new, significant market for peripherals and accessories for products such as MP3 players and portable video players. In particular, demand for MP3 accessories has been high, with accessories for the popular I-Pod player clearly the most successful category.

The market in accessories for portable digital audio/video players generates higher turnover than any other accessories category, with the average iPod generating around USD 75 in accessories purchases in North America in 2006.

The global market for accessories around MP3-players exceeded USD 4 billion in 2006, and currently enjoys annual growth of more than 10%.As portable audio/video players advance and functionalities evolve, this market is expected to grow further. Video and other content options are expected to further stimulate demand.

One emerging growth area in the accessories market is accessories for ‘smart’ mobile phones, which combine a number of functionalities. For example, in 2007 it is expected that over 300 million mobile phones with music-functionality will be sold. The mobile phone of the future will boast a host of other functionalities, such as audio and video playback, with mobile phones increasingly converging into entertainment devices.

Digital Lifestyle Outfitters (DLO) designs, markets and distributes an entire line of computer and digital music player accessories including docking stations, cables, chargers, cases and clips. The company’s portfolio consists of just over 300 products of which roughly 60% are electronic based and 40% non-electronic, like cases and clips. DLO’s portfolio consists of ‘Hardware & Electronics’, ‘Cases & Clips’ and
‘Cables & Connectors’:

• Hardware & Electronics
  DLO’s Hardware & Electronics products are accessories for MP3 players that consumers can use to expand the use of their portable digital audio/video players. Products include home entertainment systems, all-in-one car solutions, boom boxes and speaker sets.
• Cases & Clips
  DLO offers a wide variety of different (protective) cases for both MP3 players as well as mobile phones. Products include sport-ready cases with a belt clip and armband, leather cases and clear protective jewel cases.
• Cables & Connectors
  These products include power packs, car chargers, cassette adaptors and stereo connection kits for portable audio/video devices.