They also claim that in 2011, over half of all mobile phones can be considered music phones with 941 million units shipped. MultiMedia Intelligence defines a music phone as a phone with two features: (1) Music codec functionality: MP3, AAC, etc. and (2) memory slot which allows for a full featured music experience by allowing the user to carry a personal music library. This is really only possible with expandable memory.
"Voice commoditisation and falling voice ARPU are driving a shift in wireless operators to focus on data revenue models and services," according to Frank Dickson, Chief Research Officer for MultiMedia Intelligence. "Music has been the first ‘killer app' for the operators to drive the consumption of premium content on the handset. As polyphonic ringtones gave way to realtones, operators found consumers desire to personalize their handsets as a way to enhance ARPUs. Music companies discovered a way to sell a form of music which was less susceptible to piracy and provides incremental revenue."
