special study digital photo frame 2008’2012 forecast idc opinion

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Filing Information: July 2008, IDC #213237, Volume: 1, Tab: Markets Digital Photo Frames 2008 - 2012 Forecast: Special Study SPECIAL STUDY Digital Photo Frame 20082012 Forecast Tom Mainelli Ron Glaz IDC OPINION The digital photo frame market exploded in 2007, with total shipments reaching 8.7 million units. The average selling price was $135, which generated revenue of $1.2 billion for the year. However, IDC expects growth to slow dramatically in 2008 and 2009 before picking up again later in the forecast period as wireless connectivity becomes a driving force for adoption. Other key statistics that are expected to evolve during the forecast period include: ! As expected, the 78.9 in. frame category grew to own the lion’s share of the market in 2007, with total shipments on the order of 5 million units. The second- largest category was the 56.9 in. frames, which saw shipments of 2.6 million units. ! The United States will remain the dominant region throughout the forecast period. In 2007 the region saw shipments reach nearly 5.6 million units, and in 2008 that number should reach close to 6.8 million. IDC expects growth to continue throughout the forecast period, reaching 11.6 million units by 2012. ! IDC predicts that worldwide digital photo frame shipments will grow to 22 million units by 2012, with U.S. shipments representing 52.8% of the market at that time. Western Europe will grow to encompass 21.1% of the market, the Asia/Pacific region (including Japan) will account for 13.6% of the market, and the rest of the world (ROW) will own 12.5%. Global Headquarters: 5 Speen Street Framingham, MA 01701 USA P.508.872.8200 F.508.935.4015 www.idc.com

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Page 1: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

Filing Information: July 2008, IDC #213237, Volume: 1, Tab: Markets Digital Photo Frames 2008 - 2012 Forecast: Special Study

S P E C I AL S T U D Y

D i g i t a l P h o t o F r a m e 2 0 0 8 � 2 0 1 2 F o r e c a s t

Tom Mainelli Ron Glaz

I D C O P I N I O N

The digital photo frame market exploded in 2007, with total shipments reaching 8.7 million units. The average selling price was $135, which generated revenue of $1.2 billion for the year. However, IDC expects growth to slow dramatically in 2008 and 2009 before picking up again later in the forecast period as wireless connectivity becomes a driving force for adoption. Other key statistics that are expected to evolve during the forecast period include:

! As expected, the 7�8.9 in. frame category grew to own the lion's share of the market in 2007, with total shipments on the order of 5 million units. The second-largest category was the 5�6.9 in. frames, which saw shipments of 2.6 million units.

! The United States will remain the dominant region throughout the forecast period. In 2007 the region saw shipments reach nearly 5.6 million units, and in 2008 that number should reach close to 6.8 million. IDC expects growth to continue throughout the forecast period, reaching 11.6 million units by 2012.

! IDC predicts that worldwide digital photo frame shipments will grow to 22 million units by 2012, with U.S. shipments representing 52.8% of the market at that time. Western Europe will grow to encompass 21.1% of the market, the Asia/Pacific region (including Japan) will account for 13.6% of the market, and the rest of the world (ROW) will own 12.5%.

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Page 2: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

#213237 ©2008 IDC

T A B L E O F C O N T E N T S

P

In This Study 1 Definitions................................................................................................................................................. 1 Methodology ............................................................................................................................................. 2 Situat ion Overview 2 Introduction............................................................................................................................................... 2 Future Outlook 5 Drivers and Inhibitors................................................................................................................................ 6 Future Frames .......................................................................................................................................... 7 Forecast and Assumptions ....................................................................................................................... 8 Learn More 34 Related Research..................................................................................................................................... 34

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©2008 IDC #213237

L I S T O F T A B L E S

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1 Key Forecast Assumptions for the Worldwide Digital Photo Frame Market, 2008�2012 ............. 8

2 Worldwide Digital Photo Frame Shipments, Average Selling Prices, and Revenue by Region, 2007�2012...................................................................................................................... 10

3 Worldwide Digital Photo Frame Shipments by Size, 2007�2012 ................................................. 13

4 Worldwide Digital Photo Frame Average Selling Prices by Size, 2007�2012 .............................. 16

5 Worldwide Digital Photo Frame Revenue by Size, 2007�2012 ................................................... 17

6 U.S. Digital Photo Frame Shipments, Average Selling Prices, and Revenue by Size, 2007�2012 ................................................................................................................................... 19

7 Western Europe Digital Photo Frame Shipments, Average Selling Prices, and Revenue by Size, 2007�2012 .......................................................................................................................... 23

8 Asia/Pacific (Including Japan) Digital Photo Frame Shipments, Average Selling Prices, and Revenue by Size, 2007�2012 ...................................................................................................... 27

9 ROW Digital Photo Frame Shipments, Average Selling Prices, and Revenue by Size, 2007�2012 ................................................................................................................................... 31

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#213237 ©2008 IDC

L I S T O F F I G U R E S

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1 Worldwide Digital Photo Frame Shipments by Vendor, 2007....................................................... 5

2 Worldwide Digital Photo Frame Wireless Integration, 2007�2012 ............................................... 8

3 Worldwide Digital Photo Frame Shipments by Region, 2007�2012............................................. 12

4 Worldwide Digital Photo Frame Shipments by Size, 2007�2012 ................................................. 14

5 Worldwide Digital Photo Frame Average Selling Price by Region, 2007�2012............................ 15

6 Worldwide Digital Photo Frame Revenue by Region, 2007�2012................................................ 16

7 Worldwide Digital Photo Frame Average Selling Price by Size, 2007�2012 ................................ 17

8 Worldwide Digital Photo Frame Revenue by Size, 2007�2012.................................................... 18

9 U.S. Digital Photo Frame Shipments by Size, 2007�2012 ........................................................... 21

10 U.S. Digital Photo Frame Average Selling Price by Size, 2007�2012.......................................... 21

11 U.S. Digital Photo Frame Revenue by Size, 2007�2012.............................................................. 22

12 Western Europe Digital Photo Frame Shipments by Size, 2007�2012 ........................................ 25

13 Western Europe Digital Photo Frame Average Selling Price by Size, 2007�2012....................... 25

14 Western Europe Digital Photo Frame Revenue by Size, 2007�2012........................................... 26

15 Asia/Pacific (Including Japan) Digital Photo Frame Shipments by Size, 2007�2012 ................... 29

16 Asia/Pacific (Including Japan) Digital Photo Frame Average Selling Price by Size, 2007�2012 ................................................................................................................................... 29

17 Asia/Pacific (Including Japan) Photo Frame Revenue by Size, 2007�2012................................. 30

18 ROW Digital Photo Frame Shipments by Size, 2007�2012 ......................................................... 33

19 ROW Digital Photo Frame Average Selling Price by Size, 2007�2012 ........................................ 33

20 ROW Digital Photo Frame Revenue by Size, 2007�2012............................................................ 34

Page 5: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 1

I N T H I S S T U D Y

This study provides a high-level, comprehensive view of the worldwide digital photo frame market. It contains 2007 actual unit shipments and 2008�2012 forecasts. Data is presented for the United States, Western Europe, Asia/Pacific (including Japan), and the rest of the world.

The country breakdown of the major regions covered in this study is as follows:

! The United States does not necessitate further definition.

! Western Europe includes the United Kingdom, France, Germany, Italy, Spain, the Netherlands, Belgium, Denmark, Norway, Finland, Switzerland, Austria, Sweden, and others.

! Asia/Pacific includes Japan, Hong Kong, Korea, Taiwan, China (PRC), Singapore, Australia, New Zealand, India, Thailand, Malaysia, Indonesia, and the Philippines.

! ROW includes Canada, Latin America, Eastern Europe, the Middle East, and South Africa.

The shipment data encompasses shipments to a variety of channels, including original equipment manufacturers (OEMs), distributors, camera dealers, computer superstores, consumer retailers (including mass merchants and consumer electronics retailers), third-party channels (including catalog, Internet, mail, and telemarketing), and direct to users.

D e f i n i t i o n s

! Digital photo frame. A digital photo frame is an electronic display device that displays digital photos in a slide show fashion. Digital photo frames tend to include a frame that gives the display a true photo frame look. Frames could include one multiface or multiple interfaces such as USB ports, WiFi, Bluetooth and memory slots to access photo content. A good number of frames include internal memory for local content storage. In addition to still digital images, many of these displays also play back video clips and audio files. Frames come in various sizes, ranging from less than 5in. to 19in., but are not limited to these sizes. Users can place a digital photo frame on a flat surface or hang it on the wall.

! PictBridge. This is an industry standard that enables peer-to-peer communication between devices that include PictBridge. PictBridge allows the direct printing of images from PictBridge-enabled hosting devices such as digital cameras, digital photo frames, and camcorders to PictBridge-enabled printers, regardless of brand or manufacturer.

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2 #213237 ©2008 IDC

! Shipments. Shipments refer to newly built devices that are sold to a customer � end user, OEM, or any intermediary � in the given year. Equipment shipped in a previous quarter that is brought in from the field to be refurbished and remarketed is not considered newly built and is not counted in the shipment totals.

! Revenue. Revenue refers to aggregate revenue generated for camera dealers based on camera vendor unit shipments. Revenue is based on camera introductory manufacturer suggested retail price (MSRP). This does not account for price drops, rebates, or other promotions, including hard and soft bundles with other products like photo printers and memory cards.

! Average selling price (ASP). ASPs are the average unit pricing per megapixel segment per year.

M e t h o d o l o g y

Data and trend information was collected through survey questions and in-depth interviews with marketing and product management executives who represent digital photo frame vendors. The data for the global market was collected for the calendar year 2007; 2008�2012 forecast is included as well.

Secondary sources, such as component suppliers, semiconductor suppliers, flash memory suppliers, and channel representatives were used to supplement the primary research. The forecast includes interaction with IDC analysts in key regions as well as IDC's Peripherals, European, Worldwide Printer, Worldwide PC, Semiconductor, Storage, and Mobile Devices teams. Consolidation and integrity checks where performed at IDC's Worldwide Expertise Center.

Note: All numbers in this document may not be exact due to rounding. IDC reserves the right to adjust historical data if sources later supply better and more granular information.

S I T U AT I O N O V E R V I E W

I n t r o d u c t i o n

Digital camera adoption continues to grow, further expanding the annual number of images captured per user, per year to 816. Still, thousands upon thousands of these images remain locked away on PC hard drives, rarely seeing the light of day. Home photo printing once seemed the answer to freeing these photos, but it is clear today that digital distribution is where the market focus is shifting. Early adopters are creating their own personal content distribution infrastructure, including HDTVs, mobile phones, portable media players, and digital photo frames.

In 2007, digital photo frames began to solidify their place in this digital photo ecosystem. As prices declined and usability increased, consumers embraced the technology and shipment numbers skyrocketed from 2.8 million units in 2006 to 8.7 million units in 2007. Prices declined, sizes increased, and numerous brand-name vendors joined the long list of unknowns in the market.

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©2008 IDC #213237 3

However, in 2008, that staggering growth has proven to be unsustainable. In the United States, an economic downturn coupled with rising fuel and food costs has put a crimp on consumer spending that has directly impacted digital photo frame shipments into this dominant region. IDC believes other factors surrounding the technology and market itself have contributed to the slowing growth, too, including a lack of repeat buyers, slowing price declines, and user unhappiness with the current model for moving photos onto frames.

That said, IDC continues to believe there will be growth � albeit greatly slowed growth � in this market, and the vendors that will enjoy success here will do so by differentiating their products and adding new technologies that improve the user experience.

Interesting New Frames

In 2007, a pool of nearly 100 vendors globally offered digital frames, with many of them offering 5�10 models that had little to no differentiation between their competitors' frames, creating confusion among consumers and making it very difficult for them to determine the right frame to purchase.

Commoditizing the digital frame market in 2007 created an opportunity for frame vendors to introduce products with features or functions that distinguished them from the rest of the pack. Some of the most notable products are:

! Pandigital and Kodak introduced touchscreen enabled frames. These products have sensors embedded within the frame or mat that enable users to control frame processes by touching the front of the unit instead of clicking buttons on the back (or using a remote control).

! Kodak also launched a new service that enables consumers to purchase digital frames with personalized digital photo content. Using Kodak Gallery, consumers purchase a digital frame and select up to 100 images from their account; the frame will ship with the images downloaded.

! SmartParts recently launched its third generation of digital photo frames, expanding its offering to include a 32in. frame and a digital frame that incorporates a small format photo printer that allows for easy printing of displayed photos.

! In 2008, RealEase rolled out the Shogo frame, a touch-enabled 4:3 aspect-ratio product with integrated WiFi, a rechargeable battery, and an RF remote. In addition to a sharp-looking 8in. image and plenty of internal storage (up to 1GB), the other interesting thing about this frame is that once it's connect to the Internet (via wireless or Ethernet), the user can control the content via the myshogo.com portal site. The site offers easy access to popular photo sites as well as a host of additional features such as Internet radio and weather forecasts.

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! Sony entered the frame market in 2008 with three frames that included features such as red-eye removal, auto orientation (which selects portrait or landscape view depending on the placement of the frame), and an HDMI interface. Sony also offered an optional Bluetooth dongle to support the wireless upload of images from camera phones.

! D-link introduced a wireless digital frame that enabled the download of images directly from a PC or partnered photo Web sites like Flickr and Picasa. In addition, D-link partnered with FrameChannel.com (a product of FotoFrame) to provide easy access to a library of more than 400 data channels that can be streamed to the photo frame.

Channel Penetration

In any environment, the success of a product heavily depends on channel penetration. Digital photography components had a tough time expanding their channel reach beyond photo specialty channels. It took close to 10 years of double-digit growth and price erosion to expand digital camera availability into new channels such as pharmacy, toy stores, and others. In 2007, digital photo frames raised the bar on channel penetration, finding their way into all manner of retail environments. Digital frame buying behavior tends to fulfill the gift-giving item; consumers can now find frames on shelves next to digital cameras, as well as on shelves next to home furnishing, gifts, home goods, and many other generic outlets.

Gaining access to a wide array of channels is what many vendors describe as Pandigital's greatest success story. In addition to traditional CE stores like Circuit City and Richard and Sons, the company also managed to grab shelf space in drug stores, home goods outlets, gift providers, department stores, and others. As market adoption migrates more toward gift-giving items, IDC expect to see other vendors following suit and vying for shelf space in other nontraditional outlets.

Market Shares

Pandigital led the market in 2007, shipping 2 million branded units for a 22.9% market share, primarily in the United States. Philips placed a distant second, with a shipment volume of 950,000 units for a market share of 10.9%. The company shipped its largest number of frames into the Western European and U.S. markets. Rounding out the top 5 were Kodak (825,000 units), Smartparts (700,000 units), and Polaroid (650,000 units). For a look at our top 10 list of vendors, see Figure 1.

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©2008 IDC #213237 5

F I G U R E 1

W o r l dw i d e D i g i t a l P h o t o F r am e S h i p m en t s b y V en d o r , 2 0 0 7

24.9

2.6

2.6

3.4

3.7

4.0

7.4

8.0

9.5

10.9

22.9

0 5 10 15 20 25 30

Other

Ceiva

Westinghouse

Coby

Aluratek

Digital Spectrum

Polaroid

SmartParts

Kodak

Philips

PanDigital

(%)

Source: IDC, 2008

F U T U R E O U T L O O K

The market for viewing digital photos and video continue to evolve as the quantity of digital photos available grows at double-digit growth rate. In addition to the continuous penetration of digital cameras in worldwide households, other technologies such as mobile phones, notebook computers, and video cameras are also influencing the digital content available for viewing.

IDC's Worldwide Digital Image 2007�2011 Forecast: The Image Capture and Share Bible (IDC #209738, December 2007) shows that in 2006, 325 billion images were captured globally by various digital capture devices. IDC expects that by 2011, that number will double to roughly 648 billion images. This study also shows that sharing images with family and friends remains one of the top activities users do with their images. This activity augments the opportunity for digital frames. Considering that many frames are bought as gifts, and the majority of frames available today require you to add a CF card with images to work, frame vendors are initiating services that allow you to upload images via the Web as a means to generate additional revenue streams.

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6 #213237 ©2008 IDC

D r i v e r s a n d I n h i b i t o r s

The digital infrastructure has advanced within and outside of the home independently. IDC's research shows that consumer adoption of home content distribution products are on the rise, supporting consumers' access to digital video, audio, and imagery. Other elements driving demand for photo frames include:

! Frames are available in multiple sizes, from less than 5in. to 19in., with pricing starting at under $100.

! Pricing on flash memory card storage has declined to levels that entice consumers to keep their photos on memory cards as well as their PC hard disk drive.

! Digital photo frame business models have evolved to focus on hardware revenue.

! Digital frames support the viewing of still and video images as well as playing MP3 music.

In 2008, the supply of LCD panels � specifically the 7in. sizes fueling the largest segment of market growth � looked as if it might be a growth inhibitor. With digital photo frames booming � plus increased demand from applications such as GPS, portable DVD players, and mini notebooks � pricing on 7in. panels actually increased through much of 2007. In 2008, prices on such panels have finally once again begun to decline, thanks in part to increased supply and flagging demand from digital photo frame vendors. As this point, IDC doesn't except panel supply to be a significant inhibitor to market growth.

Other inhibitors to the adoption of digital frame include:

! Bad experience. With over 100 vendors supporting the digital photo frame, the opportunity for a bad experience is high. Unfortunately, one bad experience could and most likely would impact future purchases of many frames.

! Update content. Printed images in a frame could be hung on a wall for decades without anyone questioning the availability of newer images. That doesn't seem to be the case in the digital world. Digital slideshows get boring very quickly and the need to obtain new content could cause the frame to be turned off.

! Fad or not. When worldwide adoption goes from almost zero to 8 million units in two years, there tends to be some skepticism in the longevity of a product. Digital frames fit the bill, although IDC's forecast shows growth through 2012. IDC also believes that inconvenience refreshing digital frames with new content could reduce consumers' fascination with digital frames.

! Economic downturn. In times when consumers are looking to cut back on personal expenses, digital frames fit into the nice to have but could live without at this time. Despite frames prices at well below $100, more consumers are curbing their impulse purchases.

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©2008 IDC #213237 7

F u t u r e F r a m e s

What Will It Take to Be Successful?

To be successful in worldwide penetration, future digital frames will need to seamlessly fit into the evolving digital home content ecosystem by supporting easy access to personal digital content for display.

To further embed within the home ecosystem, digital frames will need to incorporate the following:

! Multiple interfaces to enable users to gain quick and easy access to content (WiFi, USB, and internal memory slots must support direct input from digital cameras, PCs, and online photo sites.)

! Imaging features that eliminate the need to prepare images prior to uploading them to the frame (These imaging features should automatically scale, crop, resize, and rotate images once the files are placed on the frame.)

! Basic image correction features such as red-eye removal and correction of lighting issues

! Remote control to support remote users' interface with the frame

! Support of future image, video, and audio file formats, plus advanced slideshow features for more savvy users

Wireless Digital Frames

As homes and business adopt WiFi as their infrastructure to transfer and access content, the addition of WiFi technology to digital cameras simplifies the workflow for content disbursement. WiFi-enabled digital photo frames will make the disbursement much more exciting. Whether the content is sent directly from a camera or through a Web site or a PC, WiFi-enabled digital frames could share special moments with friends and families as the moments are captured.

IDC expects wireless to evolve within digital frames during the forecast period. In 2007, only 7% of worldwide digital photo frame shipments included wireless (see Figure 2). IDC anticipates that by the end of 2008, 10% of worldwide shipments will include wireless technology and that shipments of frames with wireless technology will continue to grow during the forecast period. It is expected that by 2012, 55% of worldwide digital frames will include wireless technology.

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8 #213237 ©2008 IDC

F I G U R E 2

W o r l dw i d e D i g i t a l P h o t o F r am e W i r e l e s s I n t e g r a t i o n , 2 0 0 7 � 2 0 1 2

7.0

55.0

78.0

67.0

56.0

44.0

33.0

22.0

10.0

45.0

90.093.0

0102030405060708090

100

2007 2008 2009 2010 2011 2012

(%)

Built-in wireless

Nonwireless

Note: Built-in wireless includes Bluetooth and WiFi.

Source: IDC, 2008

F o r e c a s t a n d A s s u m p t i o n s

Table 1 lists the primary assumptions behind our digital photo frame forecast.

T A B L E 1

K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l dw i d e D i g i t a l P h o t o F r am e M a r k e t , 2 0 0 8 � 2 0 1 2

Market Force IDC Assumption Impact

Accelerator/Inhibitor/ Neutral

Certainty of Assumption

Digital camera penetration

The digital camera market continues to demonstrate growth in all regions. In some regions where the growth rates are slowing down, camera install base is massive.

High. The number of digital images captured per year continues to grow. Users tend to upload images to their PCs but are looking for simple solutions that will enable them to view and share their photos.

↑↑↑↑ #####

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T A B L E 1

K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l dw i d e D i g i t a l P h o t o F r am e M a r k e t , 2 0 0 8 � 2 0 1 2

Market Force IDC Assumption Impact

Accelerator/Inhibitor/ Neutral

Certainty of Assumption

Camera phone penetration

Worldwide shipments of camera-enabled cell phones continue to grow. IDC predicts that by 2012, better than 80% of cell phones used will include the camera function.

High. Ubiquitous camera phones mean even more photos � of increasing quality � added to consumers' rapidly growing photo archives.

↑↑↑↑ #####

LCD panel prices Strong demand in 2007 led to tight supplies and higher-than-expected panel prices. Slowing retail sales in 2008 have helped start panel prices on a downward trend again.

High. Frame prices must continue to decline to fuel adoption rates, pushing the products into the impulse buy category. ↑↑↑↑ ####$

LCD panel supplies

An increase in supply, coupled with slower-than-predicted DPF shipment growth, seems to have negated looming supply issues.

Low. In early 2008, it looked as if panel supplies might be a problem in the second half of the year, but that no longer appears to be an issue.

↔↔↔↔ ###$$

Improved media chipsets

Most of today's frames use chips designed for DPFs, not repurposed from portable DVD players, which means they're easier to use and work better.

High: Ease of use is key to growth, and new features such as touchscreen input, if implemented well, should help drive adoption.

↑↑↑↑ ####$

Integrated memory

A large percentage of today's frames include some integrated memory, and each generation of frames adds more.

Moderate. Integrated memory allows the user to move photos onto the frame from a memory card (freeing them to return the card to their camera) or directly from a PC using USB.

↑↑↑↑ ####$

Wireless infrastructure

WiFi and Bluetooth are becoming increasingly common in many regions of the world, but they're far from ubiquitous.

Moderate. Early adopters may be able to connect their frames easily to a wireless network, but the process is still to hard for most users. We expect wireless frames to begin fueling mainstream growth by 2010.

↔↔↔↔ ####$

Legend: #$$$$ very low, ##$$$ low, ###$$ moderate, ####$ high, ##### very high

Source: IDC, 2008

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10 #213237 ©2008 IDC

Worldwide Shipments

IDC predicts that the digital photo frame market will continue to grow across the world, with all regions experiencing growth during the forecast period. Despite economic concerns with oil prices and the increasing cost to manufacture, IDC expects global demand will continue to grow but at a declining rate. For 2008, 10.95 million units (26% growth) are expected to ship, and for 2009, 12.5 million (14% growth) are expected to ship. Over time, growth will begin to increase, and by 2012, it will expand to 26%, doubling 2008's shipment at 22 million units. The worldwide compound annual growth rate (CAGR) for the forecast period is 20.3%.

For more details, see Table 2 and Figure 3.

T A B L E 2

W o r l dw i d e D i g i t a l P h o t o F r am e S h i p m en t s , A v e r a g e S e l l i n g P r i c e s , a n d R e v en u e b y R e g i o n , 2 0 0 7 � 2 0 1 2

Region 2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

United States

Shipments (000) 5,584 6,789 7,500 8,338 9,713 11,616 15.8

Growth (%) 243.8 21.6 10.5 11.2 16.5 19.6

ASP ($) 134 131 129 120 110 100 -5.5

Growth (%) -15.8 -1.7 -1.5 -7.1 -8.5 -8.6

Revenue ($000) 746,357 891,651 969,811 1,001,907 1,067,390 1,167,167 9.4

Growth (%) 189.7 19.5 8.8 3.3 6.5 9.3

Western Europe

Shipments (000) 1,571 2,004 2,375 2,828 3,518 4,642 24.2

Growth (%) 211.6 27.6 18.5 19.0 24.4 32.0

ASP ($) 146 140 135 127 117 107 -6.0

Growth (%) -18.3 -4.4 -3.2 -5.9 -8.1 -8.2

Revenue ($000) 229,544 280,012 321,359 359,852 411,486 498,479 16.8

Growth (%) 154.5 22.0 14.8 12.0 14.3 21.1

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©2008 IDC #213237 11

T A B L E 2

W o r l dw i d e D i g i t a l P h o t o F r am e S h i p m en t s , A v e r a g e S e l l i n g P r i c e s , a n d R e v en u e b y R e g i o n , 2 0 0 7 � 2 0 1 2

Region 2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

Asia/Pacific (including Japan)

Shipments (000) 785 1,062 1,313 1,711 2,188 2,992 30.7

Growth (%) 100.3 35.3 23.6 30.4 27.8 36.8

ASP ($) 132 128 122 112 103 95 -6.4

Growth (%) -15.6 -2.7 -5.3 -8.0 -8.2 -7.7

Revenue ($000) 103,535 136,324 159,502 191,233 224,423 283,373 22.3

Growth (%) 69.1 31.7 17.0 19.9 17.4 26.3

ROW

Shipments (000) 785 1,095 1,313 1,624 2,083 2,750 28.5

Growth (%) 180.4 39.4 19.9 23.7 28.2 32.1

ASP ($) 131 128 121 112 104 95 -6.1

Growth (%) -18.0 -1.9 -5.6 -7.2 -7.4 -8.3

Revenue ($000) 102,554 140,245 158,758 182,369 216,460 262,196 20.7

Growth (%) 160.5 36.8 13.2 14.9 18.7 21.1

Worldwide

Shipments (000) 8,725 10,950 12,501 14,500 17,500 22,000 20.3

Growth (%) 211.6 25.5 14.2 16.0 20.7 25.7

ASP ($) 135 132 129 120 110 101 -5.8

Growth (%) -16.4 -2.4 -2.7 -7.0 -8.3 -8.4

Revenue ($000) 1,181,991 1,448,232 1,609,429 1,735,361 1,919,759 2,211,215 13.3

Growth (%) 160.5 22.5 11.1 7.8 10.6 15.2

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

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F I G U R E 3

W o r l dw i d e D i g i t a l P h o t o F r am e S h i p m en t s b y R e g i o n , 2 0 0 7 � 2 0 1 2

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012

(M)

United StatesWestern EuropeAsia/Pacific (including Japan)ROW

Source: IDC, 2008

In 2007, the 7�8.9in. category grew to represent the largest share of the market, up with worldwide shipments of 5 million units, and on its way to 15.8 million frames by 2012. IDC also predicts strong growth in the 9�10.9in. category. Though the category shipped just 604,000 units in 2007; by 2012, that number will climb to 3.4 million.

For a closer look at the size split forecast numbers, see Table 3 and Figure 4.

Page 17: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 13

T A B L E 3

W o r l dw i d e D i g i t a l P h o t o F r am e S h i p m en t s b y S i z e , 2 0 0 7 � 2 0 1 2 ( 0 0 0 )

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in. 131 140 127 80 53 47 -18.5

Growth (%) 89.0 6.8 -9.8 -36.7 -34.3 -10.2

5�6.9in. 2,645 1,892 1,335 1,035 986 1,031 -17.2

Growth (%) 82.4 -28.5 -29.4 -22.5 -4.7 4.5

7�8.9in. 5,063 7,431 8,702 10,305 12,631 15,811 25.6

Growth (%) 358.3 46.8 17.1 18.4 22.6 25.2

9�10.9in. 604 981 1,550 2,088 2,607 3,437 41.6

Growth (%) 309.9 62.5 58.0 34.7 24.9 31.8

11in.+ 281 505 787 992 1,223 1,675 42.9

Growth (%) 1,275.4 79.5 55.7 26.1 23.2 36.9

Total 8,725 10,950 12,501 14,500 17,500 22,000

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

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14 #213237 ©2008 IDC

F I G U R E 4

W o r l dw i d e D i g i t a l P h o t o F r am e S h i p m en t s b y S i z e , 2 0 0 7 � 2 0 1 2

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

2007 2008 2009 2010 2011 2012

(000

)

<5in.

5�6.9in.

7�8.9in.

9�10.9in.

11in.+

Source: IDC, 2008

One of the driving forces behind the growth of this market is the ever-decreasing price of frames. IDC predicts that ASPs will continue to decline throughout the forecast period. Massive growth in shipment numbers will, however, offset the price drops to garner revenue increases on a year-by-year basis.

For worldwide ASP and revenue details by region, see Figures 5 and 6. For ASP and revenue details by size, see Tables 4 and 5 and Figures 7 and 8.

Page 19: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 15

F I G U R E 5

W o r l dw i d e D i g i t a l P h o t o F r am e A v e r a g e S e l l i n g P r i c e b y R e g i o n , 2 0 0 7 � 2 0 1 2

020406080

100120140160

2007 2008 2009 2010 2011 2012

($)

United StatesWestern EuropeAsia/Pacific (including Japan)ROW

Source: IDC, 2008

Page 20: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

16 #213237 ©2008 IDC

F I G U R E 6

W o r l dw i d e D i g i t a l P h o t o F r am e R e v en u e b y R e g i o n , 2 0 0 7 � 2 0 1 2

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011 2012

($M

)

United StatesWestern EuropeAsia/Pacific (including Japan)ROW

Source: IDC, 2008

T A B L E 4

W o r l dw i d e D i g i t a l P h o t o F r am e A v e r a g e S e l l i n g P r i c e s b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in. 76 64 58 53 50 45 -10.2

Growth (%) -30.0 -15.6 -9.8 -8.4 -6.8 -10.0

5�6.9in. 106 102 94 86 78 71 -7.7

Growth (%) -23.2 -4.0 -7.7 -8.5 -9.5 -8.6

7�8.9in. 133 122 112 101 91 82 -9.3

Growth (%) -16.4 -8.8 -7.9 -9.9 -9.9 -9.9

9�10.9in. 239 222 204 184 169 153 -8.6

Growth (%) -16.4 -7.0 -8.0 -9.9 -7.9 -9.9

11in.+ 253 246 234 218 203 187 -5.8

Growth (%) -18.7 -2.8 -4.7 -6.9 -6.9 -7.8

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

Page 21: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 17

T A B L E 5

W o r l dw i d e D i g i t a l P h o t o F r am e R e v en u e b y S i z e , 2 0 0 7 � 2 0 1 2 ( $ 0 0 0 )

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in. 10,002 9,025 7,347 4,258 2,607 2,107 -26.8

Growth (%) 32.3 -9.8 -18.6 -42.0 -38.8 -19.2

5�6.9in. 281,154 193,120 125,754 89,157 76,908 73,472 -23.5

Growth (%) 40 -31.3 -34.9 -29.1 -13.7 -4.5

7�8.9in. 675,599 904,193 975,648 1,041,430 1,150,263 1,297,914 13.9

Growth (%) 246.9 33.8 7.9 6.7 10.5 12.8

9�10.9in. 144,114 217,761 316,463 384,138 441,633 524,362 29.5

Growth (%) 242.6 51.1 45.3 21.4 15.0 18.7

11in.+ 71,121 124,132 184,218 216,378 248,348 313,360 34.5

Growth (%) 717.5 74.5 48.4 17.5 14.8 26.2

Total 1,181,991 1,448,232 1,609,429 1,735,361 1,919,759 2,211,215 13.3

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

F I G U R E 7

W o r l dw i d e D i g i t a l P h o t o F r am e A v e r a g e S e l l i n g P r i c e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

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18 #213237 ©2008 IDC

F I G U R E 8

W o r l dw i d e D i g i t a l P h o t o F r am e R e v en u e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

U.S. Forecast

Shipments of digital frames to the United States will reach 6.8 million units in 2008, driven by lower-priced midsize digital frames and promotions. This is a 22% growth rate over 2007 unit shipments. Over the forecast period, unit shipments will grow at a CAGR of 15.8%. The United States will be the top region through the forecast period, ending 2012 with a 53% share. The U.S. ASP will decline at a CAGR of 5.5% over the forecast period, from $134 in 2007 to $100 in 2012. The top 2 selling frame categories (7�8.9in and 9-10.9in.) will see ASP declines to $79 and $151, respectively, by 2012. Overall market value will grow at a CAGR of 9.4% to $1.2 billion from $746 million in 2007. For more details about shipments into the United States, see Table 6 and Figures 9�11.

Page 23: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 19

T A B L E 6

U . S . D i g i t a l P h o t o F r am e S h i pm en t s , A v e r a ge S e l l i n g P r i c e s , a n d R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in.

Shipments (000) 56 68 60 25 � � NA

Growth (%) 243.8 21.6 -11.6 -58.3 -100.0 �

ASP ($) 70 60 54 48 � � NA

Growth (%) -15.0 -15.0 -10.0 -10.0 -100.0 �

Revenue ($000) 3,909 4,039 3,213 1,205 � � NA

Growth (%) 140.7 3.3 -20.5 -62.5 -100.0 �

5�6.9in.

Shipments (000) 1,452 950 525 334 291 232 -30.7

Growth (%) 78.8 -34.5 -44.8 -36.5 -12.6 -20.3

ASP ($) 95 90 81 73 66 59 -9.0

Growth (%) -26.9 -5.0 -10.0 -10.0 -10.0 -10.0

Revenue ($000) 137,925 85,779 42,645 24,380 19,170 13,756 -36.9

Growth (%) 30.7 -37.8 -50.3 -42.8 -21.4 -28.2

7�8.9in.

Shipments (000) 3,406 4,684 5,250 5,920 6,993 8,340 19.6

Growth (%) 411.6 37.5 12.1 12.8 18.1 19.3

ASP ($) 130 118 109 98 88 79 -9.4

Growth (%) -23.5 -9.0 -8.0 -10.0 -10.0 -10.0

Revenue ($000) 442,811 554,166 571,412 579,841 616,483 661,730 8.4

Growth (%) 226.8 25.1 3.1 1.5 6.3 7.3

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T A B L E 6

U . S . D i g i t a l P h o t o F r am e S h i pm en t s , A v e r a ge S e l l i n g P r i c e s , a n d R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

9�10.9in.

Shipments (000) 447 713 1,125 1,409 1,661 2,056 35.7

Growth (%) 1,275.4 59.6 57.8 25.2 17.9 23.8

ASP ($) 237 220 203 182 168 151 -8.6

Growth (%) -16.8 -7.0 -8.0 -10.0 -8.0 -10.0

Revenue ($000) 105,873 157,118 228,133 257,149 278,854 310,686 24.0

Growth (%) 226.8 48.4 45.2 12.7 8.4 11.4

11in +

Shipments (000) 223 373 540 650 767 987 34.6

Growth (%) 1,275.4 67.2 44.6 20.4 18.0 28.7

ASP ($) 250 243 230 214 199 183 -6.0

Growth (%) -16.7 -3.0 -5.0 -7.0 -7.0 -8.0

Revenue ($000) 55,840 90,548 124,407 139,331 152,883 180,994 26.5

Growth (%) 459.0 62.2 37.4 12.0 9.7 18.4

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

Page 25: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 21

F I G U R E 9

U . S . D i g i t a l P h o t o F r am e S h i pm en t s b y S i z e , 2 0 0 7 � 2 0 1 2

01,0002,0003,0004,0005,0006,0007,0008,0009,000

2007 2008 2009 2010 2011 2012

(000

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

F I G U R E 1 0

U . S . D i g i t a l P h o t o F r am e A v e r a g e S e l l i n g P r i c e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

Page 26: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

22 #213237 ©2008 IDC

F I G U R E 1 1

U . S . D i g i t a l P h o t o F r am e R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

0

200

400

600

800

1,000

1,200

1,400

2007 2008 2009 2010 2011 2012

($M

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

Western Europe Forecast

Shipments of photo frames to Western Europe will reach 2 million units in 2008. This is a 28% growth rate over 2007 unit shipments. IDC predicts that Western Europe will grow from 18% of global shipment share in 2007 to 21% in 2012. Unit shipments will grow at a CAGR of 24%. The 7�8.9in. category will see the largest growth in unit numbers during the forecast period, growing from 911,00 units in 2007 to 3.4 million units in 2012. The Western Europe ASP will decline at a CAGR of 6% over the forecast period, from $146 in 2007 to $107 in 2012. Overall market value will grow at a CAGR of 17% to $498 million from $230 million in 2007.

For more details about shipments into Western Europe, see Table 7 and Figures 12�14.

Page 27: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 23

T A B L E 7

W e s t e r n E u r o p e D i g i t a l P h o t o F r am e S h i p m en t s , A v e r a g e S e l l i n g P r i c e s , a n d R e v en u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in.

Shipments (000) 13 16 17 6 � � NA

Growth (%) 149.3 27.6 3.7 -66.0 -100.0 �

ASP ($) 85 72 65 59 � � NA

Growth (%) -29.2 -15.0 -10.0 -10.0 -100.0 �

Revenue ($000) 1,068 1,158 1,081 331 � � NA

Growth (%) 76.6 8.5 -6.7 -69.4 -100.0 �

5�6.9in.

Shipments (000) 503 381 285 170 141 139 -22.6

Growth (%) 88.1 -24.2 -25.1 -40.5 -17.1 -1.0

ASP ($) 120 114 103 92 83 75 -9.0

Growth (%) -25.0 -5.0 -10.0 -10.0 -10.0 -10.0

Revenue ($000) 60,307 43,403 29,242 15,665 11,693 10,416 -29.6

Growth (%) 41.1 -28.0 -32.6 -46.4 -25.4 -10.9

7�8.9in.

Shipments (000) 911 1,383 1,686 2,064 2,603 3,389 30.1

Growth (%) 340.8 51.8 22.0 22.4 26.1 30.2

ASP ($) 145 132 121 109 98 88 -9.4

Growth (%) -23.7 -9.0 -8.0 -10.0 -10.0 -10.0

Revenue ($000) 132,079 182,442 204,709 225,510 255,946 299,884 17.8

Growth (%) 236.4 38.1 12.2 10.2 13.5 17.2

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T A B L E 7

W e s t e r n E u r o p e D i g i t a l P h o t o F r am e S h i p m en t s , A v e r a g e S e l l i n g P r i c e s , a n d R e v en u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

9�10.9in.

Shipments (000) 110 160 238 396 521 743 46.5

Growth (%) 445.3 45.8 48.2 66.7 31.5 42.7

ASP ($) 245 228 210 189 174 156 -8.6

Growth (%) -16.9 -7.0 -8.0 -10.0 -8.0 -10.0

Revenue ($000) 26,934 36,526 49,787 74,681 90,357 116,021 33.9

Growth (%) 352.9 35.6 36.3 50.0 21.0 28.4

11in +

Shipments (000) 35 64 150 192 253 371 60.8

Growth (%) 585.5 85.6 133.3 28.5 31.7 46.6

ASP ($) 265 257 244 227 211 194 -6.0

Growth (%) -18.5 -3.0 -5.0 -7.0 -7.0 -8.0

Revenue ($000) 9,156 16,483 36,540 43,665 53,490 72,159 51.1

Growth (%) 459.0 80.0 121.7 19.5 22.5 34.9

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

Page 29: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 25

F I G U R E 1 2

W e s t e r n E u r o p e D i g i t a l P h o t o F r am e S h i p m en t s b y S i z e , 2 0 0 7 � 2 0 1 2

0500

1,0001,5002,0002,5003,0003,5004,000

2007 2008 2009 2010 2011 2012

(000

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

F I G U R E 1 3

W e s t e r n E u r o p e D i g i t a l P h o t o F r am e A ve r a g e S e l l i n g P r i c e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

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F I G U R E 1 4

W e s t e r n E u r o p e D i g i t a l P h o t o F r am e R e v en u e b y S i z e , 2 0 0 7 � 2 0 1 2

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012

($M

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

Asia/Pacific (Including Japan) Forecast

Shipments of digital photo frames to Asia/Pacific will reach 1.1 million units in 2008, driven largely by growth in Australia, Singapore, Taiwan, and PRC. Over the forecast period, unit shipments will grow at a CAGR of 31% to 3 million units in 2012. The Asia/Pacific ASP will decline at a CAGR of 6.4% over the forecast period, from $132 in 2007 to $95 in 2012. Overall market value will grow, reaching $283 million in 2012.

For more details about shipments into the Asia/Pacific region, see Table 8 and Figures 15�17.

Page 31: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 27

T A B L E 8

A s i a / P a c i f i c ( I n c l u d i n g J a p a n ) D i g i t a l P h o t o F r a m e S h i pm en t s , A v e r a g e S e l l i n g P r i c e s , a n d R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in.

Shipments (000) 31 21 13 14 11 6 -28.2

Growth (%) 0.2 -32.4 -38.2 4.3 -20.1 -45.3

ASP ($) 80 68 61 55 50 45 -11.0

Growth (%) -27.3 -15.0 -10.0 -10.0 -10.0 -10.0

Revenue ($000) 2,513 1,445 803 754 542 267 -36.1

Growth (%) -27.2 -42.5 -44.4 -6.1 -28.1 -50.8

5�6.9in.

Shipments (000) 346 276 236 240 263 329 -1.0

Growth (%) 63.2 -20.1 -14.4 1.4 9.6 25.4

ASP ($) 120 114 103 92 83 75 -9.0

Growth (%) -14.3 -5.0 -10.0 -10.0 -10.0 -10.0

Revenue ($000) 41,461 31,482 24,240 22,119 21,815 24,617 -9.9

Growth (%) 39.9 -24.1 -23.0 -8.8 -1.4 12.8

7�8.9in.

Shipments (000) 369 680 925 1,249 1,619 2,184 42.7

Growth (%) 169.0 84.2 36.1 35.0 29.6 34.9

ASP ($) 135 123 113 102 92 82 -9.4

Growth (%) -24.3 -9.0 -8.0 -10.0 -10.0 -10.0

Revenue ($000) 49,824 83,510 104,585 127,051 148,193 179,960 29.3

Growth (%) 101.7 67.6 25.2 21.5 16.6 21.4

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T A B L E 8

A s i a / P a c i f i c ( I n c l u d i n g J a p a n ) D i g i t a l P h o t o F r a m e S h i pm en t s , A v e r a g e S e l l i n g P r i c e s , a n d R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

9�10.9in.

Shipments (000) 24 53 92 137 197 308 67.2

Growth (%) 200.5 125.8 72.7 49.0 43.8 56.5

ASP ($) 240 223 205 185 170 153 -8.6

Growth (%) -16.4 -7.0 -8.0 -10.0 -8.0 -10.0

Revenue ($000) 5,654 11,875 18,867 25,297 33,474 47,158 52.8

Growth (%) 352.9 110.0 58.9 34.1 32.3 40.9

11in +

Shipments (000) 16 32 46 72 98 165 60.0

Growth (%) 300.6 102.3 44.6 56.4 37.0 67.2

ASP ($) 260 252 240 223 207 191 -6.0

Growth (%) -18.7 -3.0 -5.0 -7.0 -7.0 -8.0

Revenue ($000) 4,083 8,012 11,007 16,012 20,398 31,372 50.4

Growth (%) 215.7 96.2 37.4 45.5 27.4 53.8

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

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F I G U R E 1 5

A s i a / P a c i f i c ( I n c l u d i n g J a p a n ) D i g i t a l P h o t o F r a m e S h i pm en t s b y S i z e , 2 0 0 7 � 2 0 1 2

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011 2012

(000

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

F I G U R E 1 6

A s i a / P a c i f i c ( I n c l u d i n g J a p a n ) D i g i t a l P h o t o F r a m e A v e r a g e S e l l i n g P r i c e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

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F I G U R E 1 7

A s i a / P a c i f i c ( I n c l u d i n g J a p a n ) P h o t o F r a m e R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($M

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

Rest of World Forecast

Shipments of digital frames to the rest of the world will reach 1,1 million units in 2008, driven by growth in Canada, Central Europe, and Latin America. Over the forecast period, unit shipments will grow at a CAGR of 28% to 2.8 million units. Frames in the 7�8.9in. category will drive a large portion of the growth, with 2008 shipments of 684,000 units, growing to 1.9 million units in 2012. The ROW ASP will decline at a CAGR of 6% over the forecast period, from $131 in 2007 to $95 in 2012. Overall market value will grow at a CAGR of 21% to $262 million from $103 million in 2007.

For more details about ROW shipments, see Table 9 and Figures 18�20.

Page 35: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 31

T A B L E 9

R O W D i g i t a l P h o t o F r am e S h i pm en t s , A v e r a ge S e l l i n g P r i c e s , a n d R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

<5 in.

Shipments (000) 31 35 37 36 42 41 5.6

Growth (%) 87.0 11.6 4.9 -2.8 16.6 -1.0

ASP ($) 80 68 61 55 50 45 -11.0

Growth (%) -28.6 -15.0 -10.0 -10.0 -10.0 -10.0

Revenue ($000) 2,513 2,383 2,249 1,968 2,065 1,840 -6.0

Growth (%) 33.5 -5.2 -5.6 -12.5 4.9 -10.9

5�6.9in.

Shipments (000) 346 285 289 292 292 330 -0.9

Growth (%) 116.5 -17.6 1.4 1.2 -0.3 13.2

ASP ($) 120 114 103 92 83 75 -9.0

Growth (%) -15.5 -5.0 -10.0 -10.0 -10.0 -10.0

Revenue ($000) 41,461 32,456 29,627 26,993 24,230 24,682 -9.9

Growth (%) 82.9 -21.7 -8.7 -8.9 -10.2 1.9

7�8.9in.

Shipments (000) 377 684 840 1,072 1,416 1,898 38.2

Growth (%) 295.9 81.6 22.7 27.6 32.1 34.0

ASP ($) 135 123 113 102 92 82 -9.4

Growth (%) -27.0 -9.0 -8.0 -10.0 -10.0 -10.0

Revenue ($000) 50,884 84,075 94,942 109,027 129,641 156,341 25.2

Growth (%) 188.9 65.2 12.9 14.8 18.9 20.6

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32 #213237 ©2008 IDC

T A B L E 9

R O W D i g i t a l P h o t o F r am e S h i pm en t s , A v e r a ge S e l l i n g P r i c e s , a n d R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

2007 2008 2009 2010 2011 2012 2007�2012 CAGR (%)

9�10.9in.

Shipments (000) 24 55 96 146 229 330 69.5

Growth (%) 320.7 132.8 74.7 52.5 56.7 44.1

ASP ($) 240 223 205 185 170 153 -8.6

Growth (%) -27.0 -7.0 -8.0 -10.0 -8.0 -10.0

Revenue ($000) 5,654 12,242 19,675 27,012 38,948 50,497 54.9

Growth (%) 127.9 116.5 60.7 37.3 44.2 29.7

11in +

Shipments (000) 8 36 51 78 104 151 80.7

Growth (%) 180.4 358.9 42.0 52.3 33.6 45.3

ASP ($) 260 252 240 223 207 191 -6.0

Growth (%) -18.8 -3.0 -5.0 -7.0 -7.0 -8.0

Revenue ($000) 2,042 9,089 12,265 17,369 21,577 28,835 69.8

Growth (%) 127.9 345.2 34.9 41.6 24.2 33.6

Note: See Table 1 for key forecast assumptions.

Source: IDC, 2008

Page 37: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 33

F I G U R E 1 8

R O W D i g i t a l P h o t o F r am e S h i pm en t s b y S i z e , 2 0 0 7 � 2 0 1 2

0

500

1,000

1,500

2,000

2007 2008 2009 2010 2011 2012

(000

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

F I G U R E 1 9

R O W D i g i t a l P h o t o F r am e A v e r a g e S e l l i n g P r i c e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

Page 38: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

34 #213237 ©2008 IDC

F I G U R E 2 0

R O W D i g i t a l P h o t o F r am e R e v e n u e b y S i z e , 2 0 0 7 � 2 0 1 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012

($M

)

<5in.5�6.9in.7�8.9in.9�10.9in.11in.+

Source: IDC, 2008

L E AR N M O R E

R e l a t e d R e s e a r c h

! Worldwide Digital Still Camera 2008�2012 Forecast (IDC #212152, May 2008)

! Worldwide Online Custom Photo Merchandise 2008�2012 Forecast: The Photo Merchandise Bible (IDC #210932, February 2008)

! Worldwide Digital Image 2007�2011 Forecast: The Image Archive Bible (IDC #209873, December 2007)

! Worldwide Digital Image 2007�2011 Forecast: The Image Capture and Share Bible (IDC #209783, December 2007)

Page 39: SPECIAL STUDY Digital Photo Frame 2008’2012 Forecast IDC OPINION

©2008 IDC #213237 35

C o p y r i g h t N o t i c e

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