Analyst Predict Decline in Digital Camera Sales

The price and complexity of digital cameras, combined with competition from cell phone cameras, have some analysts predicting sales for digital cameras will drop significantly by 2007. Christopher Chute, an analyst at IDC in Framingham, Mass. says digital camera companies aimed their product at affluent households, and never looked for the next segment of users. Chute estimates only 55 percent of American households will ever own a digital camera. Also, it was expected that digital cameras would kill film, but this is not the case, analysts say, largely due to digital's inability to live up to its promise of simplicity and economy. Some analysts disagree, however, saying a digital camera's ability to replace video cameras is fueling sales, and will continue to do so. These proponents also add that, while both digital cameras and camera phones race to increase the megapixel quality of their wares, the two products are more complementary than competitive, since camera phones often turn users on to digital cameras.

The complete article is found here: Some analysts predict decline in digital camera sales