2004 Asia/Pacific Digital Camera Sales Shatter Records Following Strong Uptake

Asia/Pacific IDC: The Asia/Pacific digital camera market has crossed the 10 million mark in 2004. Despite the increasing popularity of camera phones, overall shipments grew a whopping 39% from 2003 to garner 10.6 million units in Asia/Pacific excluding Japan. While PRC, Australia and Korea were identified as the top 3 largest markets in 2004, India and PRC are touted to register the highest growth potential with CAGRs of 50% and 26% respectively from 2005 to 2009.

In the next 12 to 24 months, the market will continue to witness intense competition among digital camera vendors. Other than HP, Kodak and Epson, the market will see the emergence of Taiwanese brands especially in price-sensitive markets. It is imperative that these vendors understand the varying market dynamics as well as consumer needs and lifestyles when they penetrate into each market. Consumers in Hong Kong and Taiwan have migrated to higher-resolution digital cameras while semi-professional photography enthusiasts to Digital Single Lens Reflex (DSLR) cameras. Over in ASEAN and Korea, digital camera vendors need to overcome stiff competition from converged devices including smart handheld devices and camera phones.

Price erosion on three megapixels digital cameras was widespread in the later half of 2004 due to the abundance of these cameras particularly in North Asia. While 2004 saw three megapixels digital cameras becoming the market staple, IDC believes continuous price pressures will lead four megapixels digital cameras to overtake the latter by 2005. And as the demand for digital cameras continues to surge, Asia/Pacific has begun to witness a higher incidence of parallel imports especially from Japan. These parallel imports to make up some 20% to 30% of the overall digital camera shipments in Asia/Pacific in 2004. Price differential and more attractive camera cases were largely driving consumers around the region to put off their purchases till parallel imports become available.

The most common image processing activity across Asia/Pacific with 74% of respondents declaring that they archive their images once taken. This is followed by printing of photos (31%) and enhancement of digitally captured photos (38%). Of the total number of respondents who print digital images, 22% of users are concerned with the image quality of the printouts and would seek the services of retail photo finishes if printing at home proves to be a hassle. Moving forward, opportunities are abound for digital camera accessories or related products including photo printers, memory cards, batteries, digital albums, lens brushes as well as digital camera bags especially in matured markets where there is a higher installed base of digital cameras.

Asia/Pacific Digital Imaging Study Publ 20050602