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Digital Photo Frames

Digital Photo Frames Market Driven by Gift-Giving

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The leading reason future digital photo frame purchasers will buy a frame is as a gift, according to new research from In-Stat. Among consumers planning to purchase a digital photo frame in the next 12 months, 38% of respondents to In-Stat’s survey said they would buy the photo frame as a gift for someone else. 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.

Overall, global shipments of wireless and wired digital photo frames are on the rise, as prices decline to affordable levels. 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,” says 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.”

Recent research by In-Stat includes:

  • Nearly 60% of US respondents to In-Stat’s consumer survey 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 US$36 by 2013. The LCD, the wireless module and the enclosure are the dominant cost items.

The research, “Wi-Fi Represents Strongest Opportunity in Global Connected Digital Photo Frame Market” (#IN0904506ID), covers the worldwide market for wireless digital photo frames.

About In-Stat
In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions.

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