Apple music biz, Asian iPod market to flourish

Apple’s music business could more than double the size of the company in the next five years, according to research firm Generator. The iPod lineup will remain the primary source of growth, the firm said, although the iTunes Music Store will be contributing 37% of the the expected $15 billion in music revenues by 2010. “Most people now understand that Apple’s music business is the main source of growth but what’s not widely appreciated is just how big the music business could become in the future. It’s a big worry for some people in the industry,” says Andrew Sheehy, vice president of research at Generator.
In a separate report, Global Sources said that mainland China and Taiwan manufacturers expect to produce over $104 million worth of iPod and related audio accessories in 2006—up 37% from last year. “The iPod phenomenon has created plenty of opportunities for accessory manufacturers. At least 50 new suppliers are ready to begin production this year in Taiwan and mainland China alone,” said Global Sources’ report publisher Mark Saunderson.