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Camera Phones Outselling Digital Cameras

Camera Phones Outselling Digital Cameras

Camera phones outsold standard digital cameras for the first time in the opening half of 2003 and the holiday season should see a ramp-up in demand for these devices, according to Strategy Analytics.

The research firm claims that global sales of mobile phones with embedded cameras climbed to 25 million units in the first six months of the year (4 million from mobile phone operators) compared to the shipment of 20 million digital cameras.

Growth is being driven by Japan which accounted for six out of ten camera phones sold worldwide in the first half and the availability of subsidised handsets should ensure that it remains the dominant market for some time to come.

“Japanese consumers are really eager to buy and test new consumer electronic products,” said Neil Mawston, an analyst with Strategy Analytics.

“Consumers will still want to have a high-quality digital camera to take high-quality photos but for quick shots, many of them will be inclined to use camera phones, which they’ll carry around most of the time,” he added.

The fourth quarter is traditionally a peak period for handset suppliers and the likes of Nokia, Motorola and LG are preparing to increase shipments to major markets. Strategy Analytics calculates that global camera phone sales will reach 65 million by the end of the 2003, higher than the ARC estimate of 55 million units (see Camera Phone Sales To Double In 2003), and the market could be worth $49 billion by 2008.

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