In-Stat Predicts a Bright Future for the Digital Photo Frames Market

TMCNet.com predicts a bright future for wireless/digital picture frames!  Raju Shanbhag, TMCnet Contributor, has this to say:

The companies in the digital photo frames field can now look to improve their business in the coming holiday season, states research firm In-Stat. According to a new study published by the company, the major reason future digital photo frame purchasers will buy a frame is as a gift.

The company stated that in the next 12 months, 38 percent of respondents stated that they would buy the photo frame as a gift for someone else. The companies in this field can also take heart from the fact that there are more customers opting for this method as the prices come down.

According to In-Stat (News – Alert), the global unit shipments of digital photo frames will reach 50 million by 2013. This growth will create a silicon opportunity that will exceed $550 million by the same period, states the survey. The research also provides a silicon opportunity that will exceed $550 million.

“The weak economy is certainly slowing growth in this market, as consumers cut back their discretionary spending,” said Stephanie Ethier, In-Stat analyst, in a release. “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.”

According to the survey, more than 60 percent of US respondents wanted to see integrated wireless connectivity on their next digital photo frame purchase. The survey also predicts that the bill of materials for a wireless 8-inch digital photo frame will fall below $36 by 2013.

In another study published recently, the company announced that the suppliers and manufacturers of consumer electronic (CE) products have a great revenue generating opportunity with digital photo frames that are used primarily to showcase digital photos in a slideshow mode. The company conducted a survey to find out what US consumers are thinking about digital photo frames and reported that 1,549 respondents, of which 498 respondents, or 32 percent, owned a digital photo frame.

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