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Digital camera market suffers blow from camera phones

Posted: 01 Mar 2012 ?? ?Print Version ?Bookmark and Share

Keywords:digital camera market? camera phone? camcorder?

According to the latest report from IC Insights Inc., the digital still camera (DSC) market is suffering due to the impact of cellphones that feature at least 3MP cameras. Consumers have been found to be satisfied taking photos and videos using only their camera phones, leaving dedicated cameras and camcorders to dust.

Shipments of 3MP camera phones are forecast to grow much more quickly than DSCs and exceed one billion units for the first time in 2014. Direct wireless connectivity to the Internet has become a major issue for standalone DSCs, which are losing market share to "good-enough" embedded cameras in smartphones that can quickly connect and upload photo files to websites and e-mail. This convenience is now trumping higher picture quality in DSCs, especially when it comes to the high-volume point-and-shoot digital cameras.

phone cameras vs. DSCs

Cellphones touting at least 3MP cameras are hurting sales of dedicated still cameras that are now desperately trying to win back its market by featuring novel capabilities.

To compete with camera phones, many DSC makers are packing new models with more features and capabilitiesmany of them similar to what's found in smartphones. Also, the market has seen the emergence of a new breed of digital camera that combines the small body of compact point-and-shoot DSCs with interchangeable lens-mounting systems of DSLR models. These new systems are called electronic viewfinder interchangeable lens (EVIL) cameras. They are thinner than bulky DSLR cameras because they do not use mirrors between the image sensor and optical-eyepiece viewfinders but instead have all-electronic viewfinders built with LCD technology.

DSC unit shipments increased by a CAGR of slightly more than 37 percent from 2000-2005, but slowed to nine percent per year between 2005 and 2010, and are projected to rise by merely 2.1 percent annually from 2010 to 2015. This is from the IC Insights report titled "IC Market DriversA Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits."

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