About 1.7 million digital photo frames were sold in the U.S. last year, representing an explosive year-over-year growth rate of more than 400%, according to Parks Associates. The number even 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, a Parks’ research analyst. “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 s 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.