iSuppli in a market analysis has stated that the portable media player market is due to slowdown and level off, this is in part according to iSuppli due to market inundation with cheap mp3 players which have no real profit margin to them, and the second contributing factor are devices such as the iPhone, Nokia's XpressMusic range, and Sony Ericssons Walkman range of phones all providing, average to above average media playback capabilities, and these combined devices are beginning to take the lime light off of dedicated media players.
Apple may still reap the benefits of this slowdown, as it's strong market position and significant lead, will mean Apple will survive and has the potential to draw in new customers from the fallout of other companies suffering from the loss of market growth.