China market: Digital photo frame vendors start price war

With prices of small- to medium-size TFT LCD panel dropping, Samsung Electronics and other local digital photo frame vendors have started the price war in China this month in order to clear their inventories, according to market sources.

While Samsung has lowered its 7-inch analog digital photo frame prices by over 20% to 699 yuan (US$102), second tier vendors such as AOC, Aigo and Gadmei have also reduced their 7-inch analog digital photo frame prices by 20-30% to 450-550 yuan, with some white-box vendors even cutting the prices to 399 yuan, the sources said.

The sources indicated that digital photo frames are a popular choice for holiday gifts and with the holiday season coming at the end of year, price drops should help to stimulate sales and help vendors clear their inventories amid fast dropping panel prices..

The prices for 7-inch analog panels have dropped below US$20 and prices for lower-grade ones have even fallen to US$15, the sources noted.

In addition, previous estimations of global digital photo frame shipments this year ranged from 18-20 million units, but the number has now been lowered to about 15 million units due to the global economy downturn, the market sources noted.