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Digital photo frame holiday sales
Ralf Jurrien : April 2nd 2007 - 19:47 CET
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Parks AssociatesDigital photo frame holiday sales : Approximately 1.7 million digital photo frames were sold in the US 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%. “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. Parks Associates expects these numbers will attract more retailers and large CE manufacturers, further driving this product category to mainstream status. “Our revised US. forecast calls for 50% cumulative average growth rate (CAGR) into 2010,” Wang said.
Digital photo frame holiday salesHoliday sales - Digital photo frame
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.”

About Parks Associates
Parks Associates is a market research and consulting firm focused on all product and service segments that are “digital” or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

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