Parks Associates: Robust Holiday Sales in 2006 Pushed Digital Photo Frame Shipments above Expectations

Business Wire, March 29, 2007

DALLAS -- 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%.

"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."

For additional information on Parks Associates' research in the digital photo frame market, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

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.

Parks Associates hosts several fall events and co-hosts CONNECTIONS[TM] and CONNECTIONS[TM] Europe (in partnership with the Consumer Electronics Association) each year. In addition, Parks Associates produces the publication Industry Insights two times per year in conjunction with the CONNECTIONS[TM] Conference series.

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