Gartner Says Worldwide Sales of Camera Phones Will Reach Nearly 300 Million in 2005. By 2009, over 70 percent of total phones sales will have an embe

Gartner: Worldwide sales of camera phones will reach 295.5 million in 2005 This represents 38 percent of total worldwide mobile phone sales, up from 14 percent in 2004. The trend for camera phones first took hold in Asian markets such as South Korea and Japan. It has quickly become a global phenomenon as mobile phone users around the world have been captivated by the idea of integrating two devices - a digital camera and a phone - in one. A key factor in future market growth will be the declining cost of integrating the technology into mobile phones. The cost of integrating a one-megapixel camera to a phone will more than halve over the next four years. Sales of camera phones in Western Europe will be close to 85 million by the end of 2005, more than 55 percent of total mobile terminal sales in the region. By 2009 this will rise to 143 million, representing nearly 90 percent of the Western European mobile market. North America also continues to experience significant growth, with the camera phone market driving overall growth in mobile sales. Camera phone sales are expected to reach over 70 million units in 2005, representing 47 percent of total device sales in 2005. In both regions, Gartner points to the healthy subsidies offered on camera phones as key to the future success of the market. Camera phone sales in Asia Pacific will almost double in 2005 compared to the previous year, reaching 68 million units. Japan however, continues to lead the curve in camera phone penetration with sales of camera phones accounting for nearly 92 percent of total mobile sales. Unsurprisingly, emerging markets such as Latin America and Africa, where low end phones tend to represent the majority of sales, have lower adoption rates. However, even in these regions, As pricing on integrated cameras decline, close to half the total camera phone sales in 2009 will be equipped with up to a one- megapixel camera. Sales of Camera Phones to End Users by Region - Worldwide (Thousands of Units)

	2004	2005	2009	CAGR 2005-2009
Africa	1,829.4	4,595.4	21,771.0	47.5%
Asia/Pacific	35,629.7	68,387.6	278,396.6	42.0%
Eastern Europe	4,425.8	13,927.2	40,942.8	30.9%
Japan	39,495.7	39,991.9	45,784.6	3.4%
Latin America	3,117.7	8,750.8	52,832.9	56.8%
Middle East	1,726.6	4,437.7	17,915.1	41.7%
North America	28,135.6	70,862.3	146,115.8	19.8%
Western Europe	48,023.5	84,896.0	143,199.8	14.0%
Total	162,384.0	295,848.9	746,958.6	26.1%

Source: Gartner Dataquest (November 2005) The quality of photograph that can be taken with a camera phone continues to improve, with phones offering from less than one to seven megapixels. Unsurprisingly, the Japanese and South Korean markets lead the way in the megapixel race. In Japan where camera phones account for nearly 92 percent of total mobile phone sales, over 78 percent of models sold in 2005 will have one or two megapixels. Gartner estimates that by 2009, almost 50 percent of camera phones sold in Japan will have more than three megapixels. Outside of these more advanced markets, Gartner believes that 1.3 megapixels is now the minimum standard that will be supplied with a high-end phone with two megapixel models starting to come into the market and becoming more widespread in 2006. http://www.gartner.com/press_releases/asset_140794_11.html Publ 20051201