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Digital Photo Frame sales booming

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April 1, 2007

April 2, 2007 Approximately 1.7 million digital photo frames were sold in the U.S. in 2006, representing an explosive year-over-year growth rate of more than 400%, according to Parks Associates. The number exceeded Parks Associates’ forecast by 42% and not surprisingly, forecasts have been ramped up – the company’s revised U.S. forecast shows 50% cumulative average growth rate (CAGR) to 2010.

“The most significant factors contributing to this growth are expanded retail availability, decreased price, and consumer interest in new gift ideas,” said Harry Wang, research analyst, 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 expects these numbers will attract more retailers and large CE manufacturers, further driving this product category to mainstream status. “Our revised U.S. forecast calls for 50% cumulative average growth rate (CAGR) into 2010,” Wang said.

There is concern, with more than 30 vendors selling online and at brick-and-mortar retailers, this market could become overcrowded. “Some of the smaller players will drop out of the market soon because of resource bottlenecks and margin pressure,” Wang said.

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

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About the Author
Mike Hanlon Mike grew up thinking he would become a mathematician, accidentally started motorcycle racing, got a job writing road tests for a motorcycle magazine while at university, and became a writer. As a travelling photojournalist during his early career, his work was published in a dozen languages across 20+ countries. He went on to edit or manage over 50 print publications, with target audiences ranging from pensioners to plumbers, many different sports, many car and motorcycle magazines, with many more in the fields of communication - narrow subject magazines on topics such as advertising, marketing, visual communications, design, presentation and direct marketing. Then came the internet and Mike managed internet projects for Australia's largest multimedia company, Telstra.com.au (Australia's largest Telco), Seek.com.au (Australia's largest employment site), top100.com.au, hitwise.com, and a dozen other internet start-ups before founding Gizmag in 2002. Now he writes and thinks. All articles by Mike Hanlon
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