Philips MP3

MP3 IntroductionPortable Entertainment Solutions

Herbert Lee Product Marketing_Taiwan Email: herbert.lee@philips.com

Agenda
Market Overview Successful Story Solution Roadmap Add-Ons for Portable Jukebox (LifeVibes)

Market Overview
Portable Digital Music Player Shipment FCX (Kpcs)
2002 2003 Solid State (flash-based) 2,090 3,050 755 1,800 HDD 3,310 6,985 CD/ MP3 650 715 Net MD 6,805 12,550 Total Market Growth % 84.4%
Source: In-Stat/MDR, 3/03 Compound Annual Growth Rate (CAGR)

2004 3,680 3,550 10,609 810 18,649 48.6%

2005 4,110 5,985 14,450 875 25,420 36.3%

2006 4,850 8,360 18,150 960 32,320 27.1%

2007 CAGR 5,200 20.0% 10,233 68.4% 19,575 42.7% 1,200 13.0% 36,208 39.7% 12.0%

Market Overview_

Solid State&HDD

Solid State/ HDD Portable Players Regional Shipments
2002 2003 2004 2005 2006 2007 9