China's digital photo frame manufacturing industry is expanding rapidly with exports picking up speed, thanks to a steep increase in demand from overseas markets.

Most suppliers are expecting a further rise in overseas shipments and are preparing themselves for the demand surge. In fact, some companies anticipate their exports will increase up to threefold in the next 12 months.

Capacity expansions necessary to keep up with rising orders would entail minimal effort. Because most suppliers also produce DVD and MP3 players, the technology can be extended easily to the closely related digital photo frames.

Digital photo frames have been available in the US and the EU markets for several years, but the industry is still in its infancy in China. Most suppliers in the country ventured into the line in early 2006, with only a handful being in the business for more than two years.

At present, China churns out an estimated 100,000 units per month. More than 90 percent of output is exported, mainly to the US, the EU, Australia, Japan and Southeast Asia. The following are some of the key trends we see in China's digital photo frames industry:

•	Models fitted with 7-inch TFT LCD screens will continue to be the best-sellers among various size segments. They are large enough to provide clear and easy viewing and their size is closest to 4x6-inch photos.
•	Some makers will develop high-value models with Bluetooth and Internet-downloading capability to keep up with the advanced features found in overseas brands.
•	Companies will drop prices by 10 to 15 percent in the next six months in an effort to become competitive in the rapidly expanding line.
•	Most China suppliers will set their sights on the EU market to take advantage of the region's strong purchasing power.

This report focuses on digital photo frames with TFT LCD screen sizes of 5.6, 7, 8, 10.4 and more than 15 inches. These types constitute the bulk of China's exports.

Factors that determine the price and differentiate the quality of models are discussed in the Products & Prices section.

The Manufacturing section describes how digital photo frame are made — from incoming materials selection to assembly and packaging.

Current and upcoming trends in aesthetic and functional design, as well as how suppliers conceptualize new products are detailed in the R&D section.

The Industry Overview section analyzes key challenges digital photo frame makers are facing. It also discusses the industry composition and differentiates the capability of small, midsize and large players.

All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.

In this Report • 19 in-depth company profiles • 68 short company profiles • 231 top-selling export products • Supplier demographics • Supplier survey • Industry statistics & charts