According to latest research from Parks Associates, digital photo frame shipments  in the U.S. experienced phenomenal year-over-year growth of more than 400 per cent. Shipments exceeded the research firm’s forecasts by 42 per cent, with approximately 1.7 million frames sold in 2006.

"The most significant factors contributing to this growth are expanded retail availability, decreased price, and consumer interest in new gift ideas," explained Harry Wang, Research Analyst at Parks Associates. "The digital photo frame market was a Cinderella story for many small vendors during the past holiday season. Many were happily surprised by the strength of consumer demand."

Parks Associates says it expects the numbers to attract more retailers and large CE manufacturers, further driving the product category into mainstream status. However, there is some concern that, with the increased attention to the category, the market could become overcrowded.

"Some of the smaller players will drop out of the market soon because of resource bottlenecks and margin pressure," Wang predicted.

Regardless of the overcrowding concerns, Parks’ revised U.S. forecast calls for 50 per cent cumulative average growth rate (CAGR) into 2010.

"Manufacturers should take this opportunity to improve their product designs,” Wang suggested. “Learn from Apple: curb your enthusiasm to be the first in the market and go back to the fundamentals in design and functionality."

Published: 3/30/2007 9:50:03 AM