Digital camera market declines

Digital camera sales are in the doldrums, but a leading marketresearcher predicts they will rebound.

IDC says with key markets such as Europe, the United States,and Japan reaching saturation, and the economic downturn as a result of theglobal financial crisis, worldwide digital still camera shipment volumedeclined for the first time in 2009. However, it adds that stimulated by the economicrebound and by demand in emerging markets, worldwide shipment volume in 2010 isexpected to return towards 2008 levels.

IDC analyst Chris Chute says there are fewer new customersout there now, because most households that want a digital camera havepurchased one and don’t need any more just yet. "It's a very maturemarket, with three or four cameras per household," Chute told USA Todaywhile attending the annual Photo Marketing Association International trade showin Los Angeles.

IDC projects sales of 35 million cameras in 2010, worth $US6.6billion, down from 2008's 40.4 million cameras, worth $7.9 billion. But pricesare unlikely to go much lower than they are now. "If it did, it would meanthat companies like Canon and Nikon couldn't afford to be in the business,”Chute told USA Today. “They can't make money at those prices." He alsoforecast that printed pictures will decline, in favour of multimedia and video.