Latest Cell Phones Challenge Camera Industry

Sony Ericsson and others in the handset industry have mounted a fresh attack on traditional camera makers. The company released the first globally available phone with a high-resolution 8 megapixel camera.

Within the last year, the higher end camera phones have sported a 5 megapixel camera, comparable to most digital cameras around the world—with the exception of South Korea, where some higher resolution models are sold.

This could threaten the camera industry, as most vendors are sure to follow Sony Ericsson’s lead. Traditionally, the camera industry has maintained the upper hand with higher pixel counts and better quality pictures.

Sony Ericsson’s C905 Cybershot model will go on sale in time for the holiday rush and analysts expect Samsung Electronics and LG Electronics to unveil their own models soon after.

Nokia, the world’s top cellphone maker will have a 5 megapixel camera in its next flagship phone model N96, but it is also looking to deploy higher-resolution cameras.

Camera phones have been outselling traditional cameras for some time now, prompting Nokia to call itself “the world’s largest camera maker”.

Canon Inc, Sony and Eastman Kodak, the world’s top digital camera makers, enjoyed a 24 percent expansion in their market last year. But consumer spending is expected to slow in key western markets.

“The mobile camera phone industry is closing the quality-gap on portable digital still cameras and this represents an opportunity for growth and new markets,” said Neil Mawston, an analyst at research firm Strategy Analytics.

According to Strategy Analytics, Nokia controlled 34 percent of the camera phone market in January-March, with Samsung at 20 percent and Sony Ericsson at 11 percent.

“Sony Ericsson is trying to regain the initiative as a mobile-imaging-leader, after losing momentum to Samsung and Nokia in recent months,” Mawston said.

Sony Ericsson’s share of the camera phone market is bigger than its share of the handset market, thanks to the Cybershot. But Nokia and Samsung have brought 5 megapixel quality into the midrange market, attracting a wider range of buyers.

“Nokia’s approach towards very high resolution cameras on phones looked more conservative than that of smaller rivals,” said Ben Wood, director at research firm CCS Insight.

“We are unsure whether this is due to platform limitations or a focus on delivering the best quality pictures with less megapixels,” he said.

“Quality over pixel count is a rational approach from a technical perspective, but it may see Nokia losing out on the high street as consumers perceive 8 megapixels to be better than 5,” Wood said.

Nokia should set the benchmark for others in the top-end of the of phone market, according to Soren Petersen, head of Nokia’s product portfolio.

“In ultra high-end we have stuff in works, but I could see some more there in terms of setting the bar,” he said in an interview. “I could see a combo of 8 megapixel camera, big touch screen, still with a Qwerty keyboard.”

—

On the Net:

Sony Ericsson

Source: redOrbit Staff & Wire Reports

More News in this Category

Leave a Reply