Global Sources says that 80% of Chinese digital photo frame manufactures expect to have to lower prices in the coming months. The reasons cited for the expected need to cut prices include stricter standards, price competitions and raw materials cost.

"With a growing number of portable media makers branching out into digital photo frames, competition is expected to continue intensifying, with the supplier base expected to double by the end of 2007," said report publisher, Spenser Au.

The survey showed primary challenges for manufacturers were as follows:

• 65% of respondents cited price competition
• 16% cite raw materials cost
• 10% cite design copying and piracy
• 5% cited more strict standards overseas
• 4% cited labor shortage

Via Global Sources