1H08 Digital Photo Frame Shipments Reach Almost Entire 2007 Amounts In China

Shipments of China's digital photo frames in 1H 2008 reached 171,500, which is almost the entire volume of 2007. Revenues grew slower as prices declined. Main purchasers of digital photo frames were commercial and gift companies. CCID Consulting projects shipments to exceed 300,000 by the end of 2008.

Digital Photo Frame	2005	2006	2007	1H08
Shipments (thousands)	17.0	97.0	175.0	171.5
Shipments YOY Growth (%)	—	470.6%	80.4%	—
Revenues (millions Yuan)	35	168	258	213
Revenues YOY Growth (%)	—	376.6%	53.8%	—
Average Price (Yuan)	2067.55	1726.85	1471.99	1239.69
Average Price YOY Growth (%)	—	-16.5%	-14.8%	—

Prices tended to polarize in 1H08. The 500 – 800 Yuan segment had the highest shipment share at 21.5%, followed closely by the 1,200 – 1,500 Yuan segment at 20.8%. High-end vendors such as Philips and Samsung had higher product prices, while China's smaller and lower-end vendors had lower prices.

Products lower than 1,000 Yuan had a share of 46.7%, and most of these products came from Chinese domestic vendors. CCID Consulting expects the under 1,000 Yuan products will take a more important position in the near future. For the Chinese consumer, digital photo frames above 1000 Yuan pushes the buying decision towards TVs or 19" LCD displays, as these products have similar price points.

Digital Photo Frame Price Segment (Yuan)	1H08 Shipment Share (%)
Below 500	6.5%
500 – 800	21.5%
800 – 1,000	18.7%
1,000 – 1,200	12.4%
1,200 – 1,500	20.8%
1,500 – 2,000	14.8%
Above 2,000	5.3%
Total	100.0%

In 1H08, the 7" – 9" screen size segment was the mainstream in China, exceeding 60% of shipment share. Also, and more specifically, 3.5", 5.6", 7", 8" and 10.4" screen sizes were popular. As display panel prices dropped, larger screen size adoption, those 8" and above, edged upward. Above 14" screen sizes were also introduced. Small screen sizes also grew with customized applications.

Digital Photo Screen Size	1Q08 Shipment Share (%)	2Q08 Shipment Share (%)
1" – 4.9"	2.02%	8.00%
5" – 6.9"	9.04%	8.00%
7" – 9"	65.29%	59.41%
9.1" – 10..9"	17.02%	17.93%
11" – 13.9"	2.98%	3.85%
14" and Above	3.65%	2.81%
Total	100.00%	100.00%

Since later 2006, many vendors have entered China's markets, including Philips, Aigo, Samsung, Founder, Yocos, KSMART, Newman, 10moons and others. Some vendors have established channels including electronics stores, emporiums, supermarkets, and online shops in China.

CCID Consulting statistics show that Aigo, Samsung, and ViewSonic are the leading vendors, with a combined two-thirds shipment share. Also note below that 2Q is the off-season for digital products in China.

Digital Photo Frame Vendor	1Q08 Rank	1Q08 Shipments (thousands)	2Q08 Rank	2Q08 Shipments (thousands)
Aigo	1	36	1	23.0
Philips	4	10	2	14.9
Samsung	2	27	3	12.3
ViewSonic	3	19	4	10.3
Gadmei	5	7	5	4.0
Others		4		3.0
Total		104		67.5

Some newly introduced digital photo frames in China also have MP3, MP4, MPEG-1/2/4 and WMA player capability, larger memory capacities, stereo speakers, and mobile storage device compatibility. Larger vendors are also introducing products with Wi-Fi, Bluetooth, touch screen, FM radio, and mobile TV functions. However, such products are still a niche at this point.

Please contact us for these and other China-related data, information and products.

Unless otherwise specified, all information provided is sourced from CCID Consulting.