August 17, 2005
Digital Cameras May Face Threat From Cellphones
Cellphone makers are rushing to improve the quality of the cameras built into their phones. That is bad news for low-end, digital-camera market, explains The Wall Street Journal.
"Within the next two years, the quality of a mobile-phone camera will be such that people won't need low-end, stand-alone digital cameras," said analyst Kenneth Hyers. "This will dramatically impact camera sales."
It is forecasted that by 2010, the number of digital still cameras world-wide will be 70 million, down from 85 million to 90 million in 2006. Hyers said there will be more 1.3-megapixel camera phones available on the market by 2006, with higher-quality camera phones hitting store shelves in late 2007 and 2008.
"The operators have a real interest in trying to get as many camera phones into the hands of people," Mr. Hyers said. "Well over half of the country has a mobile phone in their pockets. Most phones have a camera embedded in them. By default, it becomes the first choice"
Digital-media analyst Vamsi Sistla said the increased competition likely will spur more innovation.
That could come in the form of turning a camera into a hand-held computer, with the ability to share pictures with other devices in the home. It also could mean offering services, such as sending pictures directly from a camera to a drugstore to get the prints developed. Those who don't embrace new technology, Mr. Sistla said, risk seeing their cameras become commoditized.
Related article:
-- Camera Phones to Steal Low-End Digital Camera Market within Two Years
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