Recent data from German-based GfK research institute shows that the market for MP3 players in China's seven major cities has fallen over the past three months.

The sales of MP3 players in Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Shenyang and Xi'an have dropped an average of 12 percent in the past three months, China Business News reported on Tuesday.

GfK data revealed that sales of MP3 players began to decline in China last October and promotions by MP3 producers in March failed to reverse the trend.

The researchers believe that market saturation and a lack of new design and functions along with the introduction of MP4 players are the main reasons for the decline in MP3 player sales.

GfK data showed that the sector appears to have grown too fast in 2004 and 2005, with the 630 MP3 player makers churning out 5,800 models.

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