The DPF7A7 digital photo frame from China Great Wall has a 10.4in 4:3 size LCD screen.

Production is small to large scale. Combined, it represents up to 90 percent of the mainland's total output.

Digital photo frames, being a relatively new product that achieved instant success in consumer popularity, naturally attracted manufacturers from the consumer electronics lines. In China, most of these makers are engaged in the production of mature electronic products such as portable DVD players, MP3 players and LCD monitors. Majority are based in Shenzhen, Guangdong province, with a combined output representing 80 to 90 percent of the mainland's total production of digital photo frames.

To date, Shenzhen has about 300 of the estimated 350 digital photo frame suppliers in China. Nearly a third of them are newcomers. About 70 percent of these makers are private domestic enterprises, while 25 percent have Hong Kong and Taiwan investments.

The production of digital photo frames of most Shenzhen makers is largely small scale, but 50 of them are medium- and large-scale manufacturers that have the capability to produce from 10,000 to more than 100,000 units monthly. These 50 makers mass produce digital photo frames and maintain a relatively stable monthly output. Their combined output is projected to represent 80 to 90 percent of Shenzhen's production this year. The rest of the suppliers produce on demand, hampered by the panel supply shortage. As with other portable electronics, 7in is the mainstream panel size in the digital photo frame sector.

There are also many trading companies in Shenzhen that facilitate the exportation of digital photo frames. Most of them have established cooperation agreements with domestic manufacturers.

Shenzhen provides a natural environment for manufacturing and trading by virtue of its geographic location and well-established economic zone status. For the electronics industry, the city provides a mature industry chain that consists of various manufacturers, numerous outsourcing production facilities, design houses and raw material and component suppliers.

The city also offers the infrastructure that facilitates exportation. Being an important logistics hub in southern China's Pearl River Delta region, Shenzhen boasts three container ports—Yantian, Shekou and Chiwan—with a throughput of 20 million standard containers by mid-December 2007.

For the manufacturers of digital photo frames, Shenzhen's abundant supply of key components such as LCD panels, chipsets and solutions makes it the natural base of their operations. This is further boosted by the presence of representative offices or agents of major overseas IC and LCD panel suppliers in the city, which not only widens and updates manufacturers' component sourcing options for their customers but also gives them easy access to technology support.

Large-scale manufacturers have a monthly capacity of more than 100,000 units, medium-scale companies can produce from 10,000 to 100,000 units and small-scale enterprises have the capacity to turn out less than 10,000 units.

There are about 10 large makers in Shenzhen, including Wanlida Group, Arlink Tech, Action Electronic, Best Wisdom and Shenzhen E-Fortune. Among the medium-sized companies with monthly output of 30,000 to 50,000 units are China Great Wall Computer Shenzhen Co. Ltd, Iposky Electronics Co. Ltd, Shenzhen Newland Electronic Industry Co. Ltd and Shenzhen Phoebe Science & Technology Co. Ltd. Eighty percent of the makers of digital photo frames in Shenzhen are small operations.

China Great Wall has a monthly production capacity of 50,000 digital photo frames. This year, the company expects its digital photo frame output to increase by 20 percent due to demand. It plans to expand its export market as well. Its major overseas destinations are the European Union and North America, accounting for 40 percent and 30 percent of the company's annual sales, respectively. The company sold more than 180,000 digital photo frames in 2007, of which 35 percent were shipped abroad.

A provider of OEM and ODM services, China Great Wall released its first digital photo frame model in 2006. The company, established in 1980, is involved in the development and production of LCD and CRT monitors, LCD TVs, power supplies and various other digital products. It now has four factories, three of which are in Shenzhen and the other in Beijing. These facilities have a combined area of 1,280,000sqm and a total workforce of more than 3,500 employees, including 2,500 production workers, 200 R&D engineers and 100 QC staff. China Great Wall's products have CE, FCC, UL, FDA and Energy Star approvals, depending on customers' orders.

Iposky can put out up to 30,000 digital photo frames a month. The company, established in 1998, specializes in the development and manufacture of MP3/MP4 players and added digital photo frames to its offerings in 2006. Its products have FCC, CE and RoHS approvals. Iposky's 10,000sqm factory in Bao'an has four production lines and 1,000 employees, including 200 to 300 production workers.

Shenzhen Newland provides OEM and ODM services for the manufacture of digital photo frames. It can produce up to 50,000 units a month at its 12-production line and 700-worker facility.

Established in 1995, Shenzhen Newland offers a range of consumer electronic products, including GPS navigators, LCD TVs, portable DVD players, HDD DVD recorders, DVD±RWs and DVD home theater systems. It has been producing digital photo frames since 2004. The maker focuses its product development efforts on cosmetic design and additional features such as Wi-Fi connectivity and DVB-T.

Shenzhen Phoebe churns out 30,000 digital photo frames and ships 80 percent to overseas markets. This year, the maker will release a new model with a digital panel and DVB-T function. Its 6,000sqm factory in Shenzhen has 150 employees, including 120 production workers, eight R&D staff and 12 QC members. It has three production lines and is equipped with signal generators, oscillators and vibration testers.

Established in 2006, Shenzhen Phoebe also supplies Bluetooth sunglasses, portable media players (PMPs), HDD PMPs and MP4 players. Its products bear the CE approval and are RoHS-compliant. The European Union is its major overseas market, representing 50 percent of annual sales.