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In-Stat: Digital Frames Market Saw Q1 Growth

6/30/2009 03:54:52 PM Eastern

Scottsdale,
Ariz. - First-half price cuts to more affordable levels on digital photo frames
helped the market see significant sales growth in the period, according to a
report from market research firm In-Stat.

But the report
also found that pressures from the struggling economy and a developing trend of
consumers to purchase frames preloaded with pictures for gifts, limited sales
to lesser-featured entry models.

More advanced
models with wireless connectivity did not fare as well, the report said,
although In-Stat is still targeting
wireless-enabled models as key growth drivers, forecast to grow at twice the
rate of overall digital photo frames in 2010.

"Prices for connected frames will
continue to decline, and as manufacturers educate consumers about these
devices, the mass market will become more comfortable using the Internet
services connected frames support," stated Stephanie Ethier, In-Stat analyst. "Applications such as sharing and
downloading pictures over the Internet, as well as streaming Internet radio and
video from online sites like YouTube, are expected to be primary drivers."

According to
In-Stat market research:

·        
Worldwide
unit shipments of all digital photo frames are expected to reach 50 million by
2013.

·        
Nearly
60 percent of US respondents to In-Stat's consumer survey identified integrated
wireless connectivity as a desired feature on their next digital photo frame
purchase.

·        
The
total silicon opportunity for digital photo frame suppliers will exceed $550
million by 2013.  Microcontrollers
comprise the largest opportunity in non-wireless enabled devices.

·        
The
bill of materials for a wireless 8-inch digital photo frame will fall below $36
by 2013; the LCD, the wireless module and the enclosure are the dominant cost
items.

The report
entitled, "Wi-Fi Represents
Strongest Opportunity in Global Connected Digital Photo Frame Market
" (available for $2,995) covers
global marketing trends for the digital frames category, featuring forecasts of
digital photo frame unit sales through 2013; forecasts of average selling
prices and bill of materials for digital photo frames in the period; total
available market forecast for components and silicon; and analysis of a U.S.
consumer survey regarding digital frames and profiles of digital photo frame
vendors and silicon vendors including: Hewlett-Packard, Kodak, Pandigital,
Philips, Samsung, Sony, RMI, Marvell Technology Group and Samsung Electronics.

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