Summary
The recession and cannibalization by phones are among the factors contributing to the slowing of the dedicated media player market. Forrester expects unit sales to grow at a compound annual growth rate (CAGR) of 2.5% in the next five years. The user base for dedicated media players will plateau lower than previously expected, with penetration levels of 34% of US adults. Given their current popularity, devices with Wi-Fi connectivity will constitute more than a third of the dedicated media player install base by 2014.
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