Digital Camera Outlook 2004
Paul Goldberg, senior vice president of sales and marketing at DXG, says "digital camera sales have finally passed that first critical 10 percent—the early adopters have already bought their cameras" so now a lot of the growth will be in the mid range and entry level products. "The sub $300 category is the sweet spot," he adds. DXG, a long-time OEM supplier to major vendors, is entering the US market with its own branded products. "There's a great opportunity for off-brands to take part of that [entry-level] market," he says. He pointed to the female/family buyer and youth markets as good opportunities for first-time buyers. DXG will offer several models under $200 including a three megapixel model with a metal body for $199 and other products that incorporate video for under $200.
Elliott Peck, director and general manager of Canon's consumer imaging group says the market "is still in a very healthy growth environment," while noting that price compression in the category has resulted in consumers getting more features for less money. That will continue in 2004.
"The consumer will buy more advanced products, higher performing products," he says. For Canon, the sweet spot will be in the three- to five-megapixel range because it offers the best combination of picture quality and affordability. Peck also expects to see a lot of growth in five megapixel cameras. "Last year the five megapixel price was very expensive, but prices are coming down," he says.