Neil Mawston, Senior Analyst with the Global Wireless Practice, commented: “Strategy Analytics expects 16 million camera phones to be sold worldwide in 2002. 3 million more camera phones will be sold this year than PDAs, emphasising the importance of this emerging market.”
However, it is evident that the Far East is dominating the picture as 96% of the camera phones sold this year have been in Japan and South Korea. The high cost of the technology is currently restricting demand in other markets.
“Camera phone retail prices, at an average E300-plus in Western Europe, are a huge barrier,” said David Kerr, Vice President of Strategy Analytics. “It is essential to move prices beyond the high-end into the mid-range at retail prices below E150. Operator subsidies will be needed, but device vendors who can drive down cost curves the fastest will gain market share.”
Once prices fall, camera phone sales will be more widespread and Strategy Analytics estimates that they will total 147 million by 2007 (see Consumers To Snap Up Camera Phones).
