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DIGITAL / ANALOG MARKET SURVEY July 2003

DIGITAL MARKET

Definitions


Digital: 0The primary method of data storage and transmission, in which each code is given a unique combination of bits and each bit generally indicates the presence or absence of a condition (on or off, yes or no, true or false, open or closed). A digital camera record images as pixels.
Pixel: 0A pixel is a tiny dot of light on the monitor. "Pixel" stands for Picture Element. It is the smallest part of every image you see on the monitor. The colour of a pixel is partly determined by how many bits (on/off units) are used to store the pixel.
Digital photography:0 A method of photography in which an image is digitally encoded and stored for later reproduction.
 

Evolution
Digital camera sales in North America
are expected to surpass film camera sales
this year, and nearly quadruple them by
2008, according to the InfoTrends Research
Group of Norwell, Mass.
   
Note:
Number of U.S. households
in March 2003 = 109.7 million.
 
Unit volume is forecast to grow
at a compound annual growth
rate of 16% to reach 51 million units in 2007. (InfoTrends 2002)

Digital Mobile Phones Sales

· The ITU forecasts that by the year 2009 there will be more cellular subscribers worldwide than fixed-line subscribers, with more than 1.4 billion of each.

· The companies are counting on explosive growth for imaging-enabled mobile phones.

· According to Strategy Analytics, the market is expected to explode in the coming years, with a predicted 147 million camera-phones sold worldwide by year-end 2007.


· By comparison, although 22 million digital still cameras have been sold worldwide in 2002, their slower growth rate of 34% will result in only 95 million sales in 2007.


· The market for digital mobile has been among the fastest growing sectors of a mobile telephone industry.
· Cellular phones with embedded digital cameras or digital camera attachments have exploded onto the retail market and are poised to outpace film and digital camera unit sales combined in 2003, according to a recent report from the research firm Future Image. The Photo Marketing Association has predicted that 24.9 million cameras (excluding single-use models) will be sold in 2003. By contrast, the Boston-based firm, Strategy Analytics, estimated that 36 million camera phones would be sold by the end of 2003.

Flash cards and memory cards shipment.
Units sold: 2001: 45 million / 2006:269.4 million; which means a 498% growth in 5 years…

Analogue Market

Decrease of the market

· The overall decrease in the use of film among digital camera owners, along with general economic concerns, has led to a decrease in both the volume of film roll and film processing sales in recent years.



Behaviour / Customer attitude

Advantages of Digital Technology:


· Fast processing
· Archiving on cards, discs or computer
· Printing at home
· One selects the picture one wants to keep
· New technology is attractive. People think they can reach a better quality with digital.

Preference Analogue/Digital?
· 16% of digital cameras sold in 2002 were purchased as a replacement for a film camera. If their film camera were to break, 50% of households indicated they would replace it with a digital camera.
· Among all digital camera owners, the level of picture taking with film cameras has decreased by more than 19% since acquiring a digital camera.


Destinations of the images after capture?

Where do consumers print their digital pictures?

· Currently, 82% of digital camera users print digital photos at home and 81% of those who plan to purchase a digital camera in the future expect to print their digital photos primarily at home.

· Nevertheless, retail locations could become the leading digital photo print location in the future. 64% of female respondents who own a digital camera or who are planning to purchase a digital camera believe that retail locations will become their preferred digital photo printing location, if it is priced competitively with film processing.

Who uses digital?

· The day women outnumber men as the primary user of digital camera is approaching.

· Women are the primary picture takers in most households and are generally regarded as the keeper of the family photo album.

· Furthermore, lower prices have enabled more households to purchase digital cameras, lowering the average age of digital camera users in recent years.

· Price and resolution are the two most important features of a digital camera.

· Women make prints of 27% of their digital images, versus 23% among men.


 

 

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