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.