National Business Daily reports that the market for MP4 products is following in the steps of the MP3 markets, with profit margins thinning as prices drop.The video players, which reportedly had profit margins of around 20% when they were introduced in 2004, would be lucky to return 7% by the time the year is out, according to one MP4 dealer.Aigo's 20 gigabyte model P035 has fallen 1000 yuan in price, to 2999, and its P864 recently fell 1000 yuan as well. Industry leader Newman cut prices on its two older 20 gigabyte models M668 and M667 to 1999 yuan earlier this year, and just recently brought its full-featured M669 model down to 2499 yuan.Off-brands and OEMs are approaching the 1000-yuan barrier.According to the dealer, the entire sector is awaiting the arrival of MP4 players with a wider variety of functions; perhaps if 3G gets off the ground in time, the unification of MP4 players with advanced mobile phone functionality will be enough to avoid another vicious cycle.Link: http://www.nbd.com.cn/admin/module/news/newsFile/20063782652.htm