Camera Phone Will Take Over Low-End Market - Press Release

[Photo-John]

Camera Phones to Steal Low-End Digital Camera Market within Two Years, Says ABI Research

OYSTER BAY, N.Y.--(BUSINESS WIRE)--Aug. 10, 2005--Within two years, low-end camera phones will take much of the market share now held by low-end standalone digital cameras. ABI Research principal analyst of global wireless operator research Kenneth Hyers says, "We believe that within the next two years, the quality of a mobile phone camera will be such that people won't need low-end standalone digital cameras. This will dramatically impact camera sales."

ABI Research's new study "Mobile Phone Imaging: Opportunities for Driving Usage of Camera Phones through Click/Send/Print" identifies the drivers for camera phone growth, explains how mobile imaging will evolve, and discusses why camera phones will eventually displace portions of the standalone digital camera market.

Within a short period, says Hyers, the typical 1.3 megapixel camera phone will be ubiquitous, and 5 megapixel models will not be uncommon. "We are in the midst of a megapixel race," he adds, "and by early 2006, 1.3 megapixel models will outsell VGA camera phones; in the following years, two-, three- and four-megapixel devices will replace the lower specification models." At the higher end of the range, the rest of the camera phone components grow in importance: is the software sufficient to make sense of the data? Is the lens good? Is the zoom accurate?

Hyers believes that the market will organize itself in tiers of quality. "Certain manufacturers, such as Motorola, are targeting the low end of the market, which is fine for getting enough inexpensive devices out there. But you've also got to have some higher-end models with greater resolution and better lenses, such as models being produced by Sony Ericcson, Samsung and Nokia, which establish them in consumers' minds as makers of prestige, high-quality imaging devices."

And the final requirements for success? Adequate storage capabilities; MMS interoperability among carriers (this is now in place throughout Europe and is becoming standardized in North America); and improved imaging and picture-management software.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy.

For more information, please visit www.abiresearch.com

[paulnj]

My question is..... When will they come with interchangable lenses ;)

[Photo-John]

My question is..... When will they come with interchangable lenses ;)

You're joking. But that really is the question. Or rather - how much will camera phones be able to offer? What features will they incorporate? They already have 3+ megapixels of resolution, flashes, and zooms lenses. I'm curious to see how good the optics and exposure options will get. If they imrpove them enough to really rival current 3-5 megapixel point-and-shoot digitals, that will be very impressive.

[mdcalaska]

Quick history recap of the Camera Phone:

Becomes the "IN Thing" in Japan - everyone owns one.

Introduced same Phone models in US

US Customer hesitates after seeing junky, low res that results in a "Pixelated" 4x6 print, Hoped for sales stall in US.

Motorola ( approaching Bankrupcy) designs and builds Camera Phone with decent resolution/improved optics. Becomes highest demand Phone in US market. Motorola survives and hires back many pink-slipped employees.

Generation Y walks around with iPod on waist and Camera Phone in hand. Becomes a "Target" for us in the retail photofiishing industry to sell "Prints" to. Kodak races to add Bluetooth/IRDA readers to Print Station kiosks. (although "Kodak racing" is same as entering Sumo wrestler in 200 meter dash )

Now Baby-boomers/Gen x are buying Camera Phones and looking for prints. (We are still losing Gen Y to the new iPod with viewing screen)

Companies/Government Agencies get seriously concerned over security issues with people now able to take pictures of sensitive areas,documents, etc. - start banning cell phones in some situations.

Now Photofinishing Retailers ( like me) are hitting up executive management for the funds to upgrade to Camera Phone readers ( same Sumo wrestler , but in 400 meter race )

The Camera phones are here to stay and will get much, much better . I'm sure many Phone makers are starting to think in terms of being able to price high enough if they argue the Customer can pass on a digital point-n-shoot camera purchase. That will allow them to add more expensive optics and better interpolation software.

All pretty wild and exciting -looks like most new purchasers are buying the 2.0 megapixel models these days. I know I asked - and got- a substantial investment in upgrades to handle reading them.

Sounds like Sony,Nokia, and Samsung learned from getting caught on the Quality-too-low US marketing and will come out with some really high end models.

[Asylum Steve]

...but I've seen press reports that future phones will also have music storage capacity (IOW, mp3 players), so much so that in time they will give stand-alone players (including iPod) a run for their money.

It only seems logical that all these seperate digital devices are being condensed into a single package...

[mdcalaska]

I have a concept for a "Cam-Phone-Rock N Roll Hat" - everything rolled into a stylish baseball cap ( or Packers Fan Cheese-head hat).

Controlled by eye twitches and facial muscles - so our hands can be free for wrapping tacos at our job ;)

Slip a 1 GB MS in behind each ear and your ready for the day!

We just need a little "seed" money to make the prototype and to have Madonna design the "ladies" model.

I'm joking of course - or am I?

[SmartWombat]

Madonna? The ladies model could be stereoscopic, one in each cone - remember that stage outfit?

[mdcalaska]

LoL - bet those would sell like crazy!