BEIJING, Oct. 31 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), released its report on China's digital photo frame chip market.
According to the report, CCID Consulting believes that China's digital photo frame will continue to develop rapidly over the next few years. The sales volume will reach 580 million sets and sales revenue will reach 6.02 billion Yuan in 2012. Meanwhile, affected by chip integration's improvement, annual compound growth rate will be slower than the growth rate of digital photo frame's output in next five years. Besides, with the price of storage chip going down, the growth rate of China's digital photo frame chip's sales revenue will be lower than the growth rate of sales volume in next few years.
Figure 1: Sales Revenue Growth of China's Digital Photo Frame, 2008-2012
http://www.ccidconsulting.com/upload/13874.jpg
Source: CCID Consulting, Jan.2008
Three Factors Drive Market's Rapid Development
Over the next few years, China's digital photo frame market will benefit from a few developments: firstly, the market complete machine systems is expected to flourish, which drives the development of China's digital photo frame market. With digital photo frame product's cognition's improvement, digital photo frame's application field continues to enlarge, upstream chip manufacturers and downstream whole machine manufacturers will enlarge their production capacity to increase output so as to drive the continuous growth of the market size; with more and more upstream and downstream manufacturers setting foot in this field, digital photo frames' production cost and product price will continue to decrease which is expected to drive up sales; secondly, as a new emerging digital product, the structure and technology required for digital photo frames are relatively simple, which make it very easy for manufacturers, such as those that produce MP3/MP4 and DVD, to set foot in this field. With the back up of a mature chip technology that well satisfy the functions and requirements of digital photo frames, which does not have obvious technical threshold, both upstream and downstream enterprises are willing to increase investment which is helpful to rapidly improve the industrial chain and drive the rapid development of digital photo frames; thirdly, as for digital photo frame's market pattern, the competition status is not yet clear, besides Macronix, other manufacturers' competitiveness are more or less equal, allowing existing manufacturers and potential entrants to grasp market opportunities. As for products, with no existing professional digital photo frame solution, the competition is in starting line. Equal competition will cultivate more growth space.
Pressure on Product & Technology Upgrades
As for product and technical development trend, upgrade is the inevitable trend.
As for image process, currently, the solution considers DVD decoder chip as base, it has obvious cost advantage, but the supported media formats are limited, so its function is relatively simple. Therefore, in order to adapt digital photo frame manufacturers' high requirements for profit space in the future, main chip will transfer current low-end products to the formats supporting JPEG, MP3, MP4, MPEG-1/2/4 and AVI.
As for storage support, currently, most digital photo frames support one kind or two kinds storage cards, in order to adapt whole machine products' upgrade trend, main chip will be compatible with CF, MD, MS, MMC, SM, SD and xD, and the products will have inbuilt storage with larger capacity and stereo loudspeakers.
As for additional functions, besides aforesaid major functions, digital photo frame's additional functions will present obvious polarization trend. On one hand, realizing functions' sententiousness, paying more attention to more convenient human-machine operation, but not emphasizing large storage capacity, its functions are closer to photo frame in traditional sense; on the other hand, it extrudes more powerful function, digital photo's storage and browse are the major functions, whose functions are similar with PC, high-end products will integrate portable media player and mobile phone's functions so as to support Bluetooth and GSM.
Diversified Application Market
With market's gradual maturity, digital photo frame's market and product forms will have definite segments so as to put forward new requirements for chip products.
Many manufacturers wish digital photo frame could replace traditional photo frame. As for function, the products in this application field have few requirements for complicated functions, but put forward higher requirements for products' easy use, sententiousness and low power consumption.
Many manufacturers continue to explore new application field, such as the digital photo frame products' development are applied in on-board and advertisement display. Besides, whole machine manufacturers and related parts manufacturers launch more digital photo frame products with more additional functions and forms, such as multimedia player functions, Bluetooth functions and touch panel.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
