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Strategy Analytics find that Camera Phones Outsell Digital Still Cameras Worldwide

Strategy Analytics’ latest report, “Camera Phones: First Half 2003 Update,” shows camera phones outsold digital still cameras worldwide, for the first time ever, in the first half of 2003.

Neil Mawston, Senior Analyst, Strategy Analytics’ Global Wireless Practice, notes “25 million camera phones were shipped worldwide, compared with just 20 million digital still cameras, in the first half of 2003. This is a milestone event, but it is just the first step towards the industry goal of getting a camera phone in every pocket.”

David Kerr, VP, Global Wireless Practice, states, “The booming camera phone market, a $49 Billion global opportunity by the end of 2008, will open up new battlegrounds for not just cell phone makers, but DSC, CMOS / CCD camera module, memory, battery and display vendors, too.”

Other key findings from the report include:

– 65 million camera phones will be sold worldwide in 2003, driven largely by frenzied growth in Japan and Korea;

– NEC and Panasonic were the top two camera phone vendors worldwide, each with 15 percent market share in the first half of 2003. Nokia followed in third with a 14 percent share;

– In the near-term, camera phones are no serious threat to the consumer digital still camera market. The picture quality differential between camera phones and digital still cameras is too great to be a threat in 2004; and

– Camera phones will account for 13 percent of global handset sales in 2003. Security and privacy concerns in the corporate market represent one potential problem for the cameraphone market. However, the bigger challenge remains pushing camera phones to mass market price points.

About Fabrizio Pilato

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