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Demand for Lower Price Digital Photo Frames

The market for digital photo frames has gone mainstream, particularly since prices dropped to affordable levels in the first half of 2009, according to the latest market study by In-Stat.

However, most units shipped still lack advanced features such as wireless connectivity to the Internet. Nevertheless, Wi-Fi enabled photo frames are a key growth driver as they will grow at twice the rate of overall digital photo frames in 2010.

"Prices for connected frames will continue to decline, and as manufacturers educate consumers about these devices -- the mass market will become more comfortable using the Internet services connected frames support," says Stephanie Ethier, In-Stat analyst.

Applications such as sharing and downloading pictures over the Internet, as well as streaming Internet radio and video from online sites like YouTube, are also expected to be primary drivers.

In-Stat's market study found the following:

- Worldwide unit shipments of all digital photo frames are expected to reach 50 million by 2013.

- Nearly 60 percent of U.S. respondents to In-Stat's consumer survey identified integrated wireless connectivity as a desired feature on their next digital photo frame purchase.

- The total silicon opportunity for digital photo frame suppliers will exceed $550 million by 2013. Microcontrollers comprise the largest opportunity in non-wireless enabled devices.

- The bill of materials for a wireless 8-inch digital photo frame will fall below $36 by 2013; the LCD, the wireless module and the enclosure are the dominant cost items.

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