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Digital Frame Market Grew 400 Percent In 2006

Dallas — More than 1.7 million digital photo frames were sold in the United States in 2006, according to the research firm Parks Associates.

The numbers represent a substantial upwards revision of the firm’s earlier forecast. In all, the digital frame category grew 400 percent from 2005 to 2006.

“The most significant factors contributing to this growth are expanded retail availability, decreased price and consumer interest in new gift ideas,” said Harry Wang, research analyst, Parks Associates, in a statement announcing the findings.

Thanks to the category’s growth, Parks is predicting a 50 percent cumulative average growth rate into 2010. Unit sell through should reach roughly 8.7 million units in the United States by 2010, Wang told TWICE.

Pacific Digital and Pandigital were the leading vendors, Wang said.

The market does run the risk of over-crowding, Wang cautioned.

“Some of the smaller players will drop out of the market soon because of resource bottlenecks and margin pressure,” he said. “Manufacturers should take this opportunity to improve their product designs. Learn from Apple — curb your enthusiasm to be the first in the market and go back to the fundamentals in design and functionality.”