Category: Digital imaging

Revenue from shipments of image sensors for mobile phones will grow to $5.9 bln by 2010, increasing at a Compound Annual Growth Rate (CAGR) of 27.4%, up from $1.7 bln in 2005. Unit shipments of image sensors to mobile phones will grow to 1.2 bln by 2010, increasing at a CAGR of 19.7%, up from 484 mln units in 2005. In 2005, 199 mln image sensors were sold for all other applications outside of mobile phones, including digital still cameras. By 2010, this disparity will grow more, with nearly 1.2 bln sensors shipped for mobile handsets and slightly less than 350 mln shipped for other applications.

Over 348 mln mobile phones sold in 2006 had a built-in camcorder and in 2007 that number is seen at 490 mln, according to Strategy Analytics.

Growth in digital camera shipments by Japanese makers in 2007 is expected to slow to 7.5% from 2006, when lower prices and a wider variety of models with interchangeable lenses spurred growth to 22%. Demand will continue to lose speed as shipment growth is expected to slow to 4.3% in 2008, and 2.5% in 2009.

Fully 11% of respondents to a Tabblo survey indicated they have more than 10,000 digital photos. The largest group of survey respondents (27%) has between 1,001 and 5,000 digital photos. If this data is extrapolated to the general public, it translates into Americans having almost 500 bln digital photos. Additionally, when asked how they were going to photograph the holiday and New Year’s parties they planned to attend, point and shoot cameras remain the preferred choice, with 55% of survey respondents indicating they planned to use them. Digital SLRs were a popular second choice, with 37% of respondents indicating they planned to use them to capture holiday memories. Despite the dramatic growth in the number of camera phones, only 3% of respondents indicated they planned to use them to take pictures at upcoming parties, Tabblo reports.

The worldwide market for digital still cameras is leveling off at about $18 bln per year, according to IC Insights. Nearly 82 mln stand-alone digital still cameras are expected to be sold worldwide in 2007, which would represent a 7% increase from 2006. Digital still camera unit sales are projected to increase 13% in 2006. Despite the projected 7% growth in 2007 unit shipments, lower average selling prices will result in zero revenue growth for digital still cameras in 2007.

The average price of a 4″x6″ print has fallen to 15c from 43c in 2002, says Photo Marketing Association International. PMAI says 6.9 bln prints will be produced by retailers in 2006, up from 4.6 bln in 2005.

Shipments of flash cards will pass 556 mln units in 2006, and generate revenue of $8.26 bln. Unit sales are expected to reach 823 mln by 2010, as falling prices prompt new application uses, Gartner reports.

Cell phones now account for 9% of primary still image capture, which is more than double the 2005 rate. Among consumers who now classify their cell phone as their primary image capture device, 47% also own a digital camera. The five megapixel category remains the dominate segment, but with expected growth of 120% in 2006, the six to seven megapixel category will register the highest growth rate 2006. Consumers continue to take chances with their digital photos and videos with 78% of them relying on their PC for long-term storage, meaning they are just a hard-drive crash away from disaster. Herbert added that 49% of households say they would be interested in automatic back-up of their files on their PC, Consumer Electronics Association says.

66% of the French satellite TV subscribers are very or extremely interested in viewing digital photos on the TV, compared with only 20% among the US satellite TV viewers. 52% of the Taiwanese digital cable users are very or extremely interested in TV-based commerce applications, versus 12% among the Japanese digital cable subscribers, Parks Associates says.

According to National Retail Federation annual survey of customer support satisfaction among US retailers, Amazon.com is #1 US retailer in customer support satisfaction, followed by Nordstrom, LL Bean, Overstock.com and Lane Bryant.

In August 2006, European traffic to photo sites rose 5%, led by Imageshack.us, with 13.0 mln visitors (a 10% increase versus July 2006), followed by Flickr.com with 6.5 mln visitors (an 11% gain) and Piczo.com with 6.4 mln visitors (a 10% gain). As Europeans sought to share their best summer pictures, Photobucket.com and Pbase.com achieved the highest growth rates, increasing 15% and 18%, respectively versus the prior month.

Top 10 photo sites in Europe
Audience, 000	July 2006	Aug 2006	MTM growth
Total visits to photo sites	57,512	60,595	5%
ImageShack.US	11,806	13,013	10%
Flickr.COM	5,834	6,454	11%
Piczo.COM	5,826	6,390	10%
Photobucket.com	3,606	4,132	15%
ImageVenue.COM	3,846	3,973	3%
Yahoo! Photos	3,627	3,906	8%
Webshots.com	3,407	2,865	-16%
Putfile.com	2,463	2,407	-2%
Pbase.com	1,978	2,327	18%
Eastman Kodak	1,940	1,957	1%
Source: comScore

80% of the people that have a camera phone say they regularly carry their digital camera, 75% of SmartPhone users also carry a PDA, and more than 50% of users of multimedia phones also carry their MP3 player, In-Stats says.

Camera phones comprised over 70% of all digital cameras that shipped in 2005, and the vast majority of these devices used Complimentary Metal Oxide Semiconductor (CMOS) sensors, with the remainder using Charge-Coupled Devices (CCDs), In-Stat says. Because of the strength of the camera phone market, overall area CMOS image sensor shipments exceeded area CCD shipments by nearly a factor of three in 2005. This gap will continue to widen through 2010. Digital still cameras continued as the second-largest market for image sensors, with over 70 mln units shipped in 2005. In 2005, embedded cameras in PCs hit the market, especially in notebook PCs. Automotive rear view cameras continued to show strong growth in
higher-end sedans, sport utility vehicles and minivans.

Demand for digital still cameras in Ukraine will soon make the country the third-largest DSC market in Central and Eastern Europe. According to IDC, in the first six months of in 2006 shipments soared by more than 68% compared to the same period in 2005, with unit sales reaching a new six-month high of over 224,000. In the first half of 2006 shipments jumped by more than 88% for models with five or more megapixels compared to 45% in the first half of 2005.

Consumer digital still camera sales in the United States totaled 24.7 mln units in 2005 and will reach a peak of 29.1 mln in 2009. Household penetration will reach 80% in 2010, Gartner says.

US digital still camera and camcorder owners are accessorizing to complement existing assets. According to IDC, 84% of camcorder and digital camera owners have purchased accessories, and the majority are very pleased with those purchases.

90% of Americans believe that one-time-use cameras represent a great companion to more expensive cameras to capture quality images in those situations where they might not want to risk a more expensive camera, Kodak reports. Nearly 60% of Americans own more expensive film or digital cameras, but still turn to one-time-use cameras when they either want to protect their camera or if that camera isn’t available. Findings showed that 80% of Americans have purchased a one-time-use camera in such situations. The study also found that when it comes to summer fun and outdoor activities, such as going to the beach, whitewater rafting, hiking and biking, consumers are likely to use one-time-use cameras. Furthermore, when it comes to letting small children take photographs, 81% of Americans feel more comfortable handing a child a one-time-use camera.

The share of digital camera owners who print at home declined by 10% between 2004 and 2006. Meanwhile, 31% of digital camera owners who print their photos have used retail locations, reflecting an increase of 22% over the past two years. Although only 19% of consumers were printing the photos that they wanted to save in 2004, this share had risen to 36% in 2006, InfoTrends says.

The global market for digital photo frame products will exceed 12 mln units by 2010, up from an estimated 700,000 units shipped in 2005, Parks Associates reports.

According to InfoTrends, 34% of US digital camera owners are repeat buyers, representing an increase of 10% over the previous year. In addition, 20% of digital camera owners surveyed were planning to purchase another digital camera within the 2006.

Digital camera unit sales have grown from 4.5 million to 20.5 million during 2000-2005, and consumers are capturing more images than ever before. 60% of respondents to Research and Markets survey who develop or print their digital images reported that they sent their digital photographs to others via e-mail and 13% report use of an online photo printing service to share their photos. Thus, while the number of digital prints increased more than 1,500% from 2000, this was not enough to compensate for the corresponding decline in film prints.

Global demand for digital still cameras will continue to be strong in the short term, with 111 million units shipping in 2008, but a slowdown is on the horizon. Asia-Pacific and the Rest of the World (ROW) will emerge as powerhouses and account for over 40% of the global DSC shipments in 2010. More vendors will exit the market in the next 18 months, IDC says.

While overall digital still camera (DSC) shipments continued to grow in 2005, the market began to consolidate as weaker camera vendors exited the market and new consumer electronic vendors enhanced their global presence, IDC says. Global demand will continue to be strong in the short term, with 111 mln units shipping in 2008, but a slowdown is on the horizon. Asia/Pacific and the Rest of the World (ROW) will emerge as powerhouses and account for over 40% of the global DSC shipments in 2010. More vendors will exit the market in the next 18 months.

More than 75% of all cameras sold today are digital, and digital images are expected to account for 90% of all professionally taken photos by 2010, compared with 70% now, according to InfoTrends.

While digital single lens reflex (DSLR) sales make up a significantly smaller portion of the digital camera market, The NPD Group forecast shows DSLRs comprising 33.6% of revenue and over 11% of unit volume by 2010. In 2006, sales in the US could reach $1.7 bln, a seven% increase over 2005, while unit sales could reach 1.8 mln, a 54% increase over 2004. The ASP for DSLRs in 2006 is expected to decline over 30% to around $942, and continue to fall through 2010, settling at around $737.