It was pretty much a hit right out of the box, ... The price fell rapidly, and it was a product that was compellingly different from VHS. The sound quality was better and the picture quality was better.

Eight million units shipped in 2004 and shipments surpassed 25 million in 2005. We anticipate an additional 30 million will ship this year, which puts MP3 right up there with televisions.

Even with digital cameras now in 49 percent of U.S. homes, consumers are purchasing higher mega-pixel digital cameras as upgrades to their original digital cameras, ... We're seeing a similar upgrade mentality with wireless communications handsets. Many consumers are opting for digital camera phones and smart phone devices as opposed to direct model replacement purchases. This demonstrates how established these products are in the lives of consumers.

This is the first year where digital television will surpass the sales of analog television sets. Sixty-two percent of all televisions sold this year will be some form of digital television, and will account for 48.2 million sets shipped.

Both the wholesale and retail environment for consumer electronics is very tough, ... This is a brutal, competitive, low-margin business. Industry sales are struggling to grow because it's a saturated market with too many products.

This represents a tremendous opportunity for retailers, who can cut through this lack of understanding by educating their sales staff and training them on how to conduct effective audio demonstrations.

While price remains a purchase driver, the results of this study show that the audio buyer still places sound quality at the top of their list. The good news for retailers is that many consumers are leaving the door of opportunity cracked open through their willingness to interact with a sales person and to receive a demonstration of better audio equipment.

Wal-Mart's impact in almost every sector of retail is undeniable. It's hard for any company to stay competitive given Wal-Mart's significant cost advantages. And now Dell's entry into consumer electronics means the competition is becoming more intense,

We have witnessed this year a phenomenal growth in MP3.

Getting a foothold on the DVD market really gives you leverage in the TV market,