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 PAGE \* MERGEFORMAT 11 Save MP3 1, the market out of the puzzled 2006 6,7 month, Mp3 sales shrunk dramatically, brand largely evaporated, the whole industrial chain, including generation plants, spare parts supply factories, distributors and so full of showing a tightening trend. In 2005 with the number of brands within the Mp3 market to reach 630 more than once, and now on the market remaining less than 100. According to an authoritative market research institutions across the country in April 2006 in Beijing, Shanghai, Guangzhou and other cities, sales of the seven survey shows that seven cities in only 16 million units sold, down from a year ago levels, decreased by 15%. While the other, according to statistics, the mainstream brands in 6,7 month sales fell nearly 50%! As we all know, due to the development of mobile communication industry, mobile phone revolution replaced the BP machine function and market position, but make it into history. And we know, MP3 compared to the vitality of the year is the BP machine, MP3 function from a very small number of carriers left and right, BP machine operators disappear first substitution effect. We not only have to ask, Mp3 how it? Whether it will repeat the tragic year BP machine industry, the evolution of the transition to become products? First, the market competitive pressures have also formed a strong trend. Like now, like a small U-like, Mp3 is also a highly speculative business, and the very low barriers to entry. Upstream components, such as shell, electrical wiring, electronic components, batteries, etc. have a mature state. As the technical barriers to market entry threshold low and high profit margins brought about by the rapid popularity of the market. Formed the main source of the market has the following three categories: First, extension of professional multi-brand electrical appliances, such as the Founder computers, Apple computers. Second, specialized brand of capital, people wishing to take