Smartphones eating out Digital Camera segment
Traditional Camera makers face tougher times in markets with higher smartphone penetration.
As smartphones with better cameras and increasingly sophisticated optics become the de-facto camera for consumers, camera majors such as Canon and Nikon are cutting their forecasts as camera markets entering long term declines. Consumers value the social networking aspect of smartphone cameras, which allow sharing of images immediately. Secondly the key is convergence and having to carry only one device and the convenience of a single terminal. In July 2013, Canon lowered its full year profit forecast by 16%. Nikon followed this by cutting profit forecasts, especially due to slow down in the digital camera segment.
Slowly and steadily, Cameras are getting sidelined as specialized devices that cater to specific types of users, such as professionals and advanced amateurs. Worldwide camera shipments fell 29 percent in the first five months of 2013, according to the Camera & Imaging Products Association in Tokyo. IDC mirrors this sentiment and forecasts that the global digital camera market is forecast to shrink 29 percent to 102 million units next year compared with 144 million in 2010. On the other hand, smartphone shipments are expected to rise about 32 percent to 928 million units as per market-research firm TrendForce. Samsung, Nokia, iPhone, Sony and the likes are beginning to take over the casual photography and the digital camera space.
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