Asia/Pacific digital camera market has crossed the 10 mln mark in 2004, according to IDC. Despite the increasing popularity of camera phones, overall shipments grew a whopping 39% from 2003 to garner 10.6 mln units in Asia/Pacific excluding Japan. While China, Australia and Korea were identified as the top 3 largest markets in 2004, India and PRC are touted to register the highest growth potential with CAGRs of 50% and 26% respectively from 2005 to 2009. Price erosion on three megapixels digital cameras was widespread in the later half of 2004 due to the abundance of these cameras particularly in North Asia. While 2004 saw 3 megapixels digital cameras becoming the market staple, IDC believes continuous price pressures will lead 4 megapixels digital cameras to overtake the latter by 2005. And as the demand for digital cameras continues to surge, Asia/Pacific has begun to witness a higher incidence of parallel imports especially from Japan. IDC estimated these parallel imports to make up some 20% to 30% of the overall digital camera shipments in Asia/Pacific in 2004. Price differential and more attractive camera cases were largely driving consumers around the region to put off their purchases till parallel imports become available.