Global shipments of camera phones are set to climb from 19 million in 2002 to almost 300 million in 2007 but wireless operators will only extract full potential from these devices if they address subscriber wants and needs, according to a report from IDC.
New handsets with embedded cameras have galvanised the mobile market with Japanese consumers, in particular, eager to sample the services on offer (see
Camera Phones Outselling Digital Cameras). An IDC survey found that 44% of people planning to purchase a camera phone in the next six months would be willing to pay more than $21 per month (on top of the standard service charge) to send and receive images over their mobile phone.
However, experience suggests that one-third of subscribers stop taking advantage of this functionality in just a few months. Growth in user satisfaction is imperative if earnings are to be maximised.
“Operators and device vendors are beginning to recognize the importance of lowering the barriers to cameraphone adoption and usage for subscribers,” said Chris Chute, senior analyst, Digital Imaging Solutions and Services at IDC. “Everyone wants to grow their revenue streams, but if prices are high and subscribers aren’t compelled by the offerings – either service or hardware – they’ll quickly lose interest.”
A variety of methods are being employed to encourage uptake of camera phones. Easy-to-use devices have been introduced that require a minimal number of button taps to capture and transmit photos. Vendors have also entered into partnerships with operators which enable new subscribers to obtain a camera phone at no cost.
In addition, low-cost/no-cost image transmission services are being offered to subscribers on a limited-time basis to boost early adoption among users. As a direct consequence of these measures, IDC estimates that worldwide shipments of camera phones will reach 298 million in 2007.
“Given the potential benefits of cameraphones to end-users, device vendors, and wireless operators, we expect digital capture technology to quickly become a standard feature within most mobile devices,” said Alex Slawsby, IDC Mobile Devices analyst. “Although an increasing number of subscribers will own mobile devices with digital capture technology – regardless of whether or not they sought such capability – success or failure of digital imaging services will depend on end-user education and efforts to remove barriers-to-adoption.”
