Gift Giving Becomes Largest Digital Frame Growth Factor

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Scottsdale, Ariz. - Gift giving will be the largest motivator of future digital photo frame purchases, according to a new study by In-Stat.

The study, entitled "Wi-Fi Represents Strongest Opportunity in Global Connected Digital Photo Frame Market" (IN0904506ID), found that 38 percent of consumers, who said they plan to purchase a digital photo frame in the next 12 months, said they would do so as for a gift item.

"As a result, the coming holiday season will be crucial for competitors in the digital photo frame market such as HP, Kodak, Pandigital, Philips, Samsung and Sony," the market research firm said.

As popularity increases in proportion to lowered price points, overall global shipments of wireless and wired digital photo frames are on the rise, the company said. In-Stat expects worldwide unit shipments of digital photo frames to reach 50 million by 2013.

"The weak economy is certainly slowing growth in this market, as consumers cut back their discretionary spending," stated Stephanie Ethier, In-Stat analyst. "However, pricing continues to fall and awareness is growing. In addition, competitors are introducing next generation digital photo frames that support advanced functions, such as multimedia playback of movie clips and audio files, and include support for Wi-Fi or bluetooth connectivity."

Other findings in the study include the following:

·         Nearly 60 percent of U.S. respondents identified integrated wireless connectivity as a desired feature on their next digital photo frame purchase.

·         Growth in digital photo frames creates a silicon opportunity that 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.

Other findings covered in the report include forecasts of digital photo frame unit sales and revenue (connected and non-connected) by functionality segment through 2013, forecasts of average selling prices and bill of materials for digital photo frames through 2013, and- the total available market forecast for components and silicon through 2013.


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