147 Million Camera Phones Will Be Sold Worldwide in 2007
 

Strategy Analytics, the global research and consulting company, today released a new Market Forecast report entitled "Strategic Perspectives on Cellular Camera Phones."

This report from the Strategy Analytics Global Wireless Practice notes that 16 million camera phones will be sold worldwide in 2002, growing strongly to 147 million in 2007. By comparison, although 22 million digital still cameras will be sold worldwide in 2002, their slower growth rate of 34% will result in only 95 million sales in 2007.

Other key findings from the report include: 1 in 5 cellular handsets sold in 2007 will contain an embedded camera; high prices and relatively large form factors will inhibit initial diffusion of camera phones in W. Europe; expansion camera modules are short-term solutions for current limited, niche demand; and camera PDAs, accounting for 6% of global PDA sales in 2007, will be less prominent than camera phones.

Neil Mawston, Senior Analyst with the Strategy Analytics Global Wireless Practice, notes, "Camera phones will be an essential tool in driving handset replacement rates in the next 5 years, especially in sluggish markets such as Western Europe."

Chris Ambrosio, Director, Global Wireless Practice, comments, "Camera phones outside Japan and Korea will remain high-cost, moderate volume products through 2003. Shipment volume will improve in 2004 when camera modules begin to commoditize, and when handset vendors begin to benefit from economies of scale."

David Kerr, Vice President, Global Wireless Practice, adds, "Wireless camera phones are one important catalyst for wireless data success beyond the workhorse short messaging service (SMS), but cool camera phones will not sell themselves. Operators must link availability of these devices to effective multimedia messaging service (MMS) tariffs, as well as emotive advertising and promotional messages. Wireless operators must not repeat the early mistakes made with GPRS tariffs or they risk stalling the MMS growth engine."