Digital Camera Sales To Be Hit By Camera Phones Say Experts

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Medium priced digital camera sales are set to come under threat from a new generation of Smartphones that have flash and increased megapixels claims leading research Company iSuppli.

Medium priced digital camera sales are set to come under threat from a new generation of Smartphones that have flash and increased megapixels claims leading research Company iSuppli.

 According to analyst Pam Tufegdzic of iSuppli cannibalisation “is likely to occur first in Asia Pacific, (Asia Pacific includes Australia) and Europe as consumers in these regions seem to be more comfortable with taking pictures using camera phones,” she said. But as the number of megapixels in camera phones rises, the quality of some camera phones “will rival low-end point-and-shoot cameras, presenting a competitive threat,” she said.

Although more camera phone megapixels deliver smoother, less-pixelated images, she claimed, camera phone makers are focusing on other performance enhancements to make camera phones a capable competitor to low-end cameras.

Camera phone makers will focus on adding optical zoom, auto focus, improved flashes, and more sophisticated image processing electronics, she explained. Features such as image stabilization, automatic judgment and multiple image capture will also migrate from cameras to camera phones during the next few years, she added.

Camera makers are responding to the competitive threat by increasing resolution in smaller form factors, but Tufegdzic questioned whether that would be enough “to fend off the incoming attack from handsets.”

The average resolution for camera phone CMOS sensors will rise to 5.7 megapixels in 2013, up 171.4 percent from 2.1 megapixels in 2009, iSuppli noted. In contrast, camera megapixels will rise to 13.9 in 2013, up only 46.3 percent from 9.5 megapixels in 2009.

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