Camera Phones to Steal Low-End Digital Camera Market within Two Years

ABI Research predicts in a new study that "within two years, low-end camera phones will take much of the market share now held by low-end standalone digital cameras." ABI Research analyst Kenneth Hyers said, "the quality of a mobile phone camera will be such that people won't need low-end standalone digital cameras. This will dramatically impact camera sales."

The study looks at the key market drivers and explains how the market will evolve. According to Hyers, "We are in the midst of a megapixel race, and by early 2006, 1.3 megapixel models will outsell VGA camera phones; in the following years, two-, three- and four-megapixel devices will replace the lower specification models."

Hyers also believes that "Certain manufacturers, such as Motorola, are targeting the low end of the market, which is fine for getting enough inexpensive devices out there. But you've also got to have some higher-end models with greater resolution and better lenses, such as models being produced by Sony Ericcson, Samsung and Nokia, which establish them in consumers' minds as makers of prestige, high-quality imaging devices."