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Over the Study Period 2003-2006, Camera-Phones Will Reduce the Sales of Digital Cameras by 7.7 Percent, for a Total of 12.6 Million Fewer Units Shipped, and a Decrease of More Than $2.7 Billion in Shipment Value. So says Research and Markets, a Dublin Ireland based consumer research firm.

According to a recent study by the company, camera-phones are on the verge of delivering the snapshot capabilities that people currently expect from single-use film cameras and entry-level digital cameras. The recent release of two-megapixel camera-phones by all three Japanese wireless carriers raises the question: Why buy a digital camera?

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"Will Camera-phones Replace Digital Cameras?" is based on an in-depth analysis of the performance characteristics of point-and-shoot digital cameras and camera-phones in more than 30 separate performance and value dimensions, both for current and soon-to-be-released models. Current and near-term capabilities and trends are considered. The 50-page study with 62 figures and charts includes forecasts for the impact of camera-phones on unit sales and dollar values of three categories of point-and-shoot cameras - one megapixel and under, two megapixel, and three megapixel, the current "sweet spot" for consumer cameras.

Its key conclusions include:

-- Digital camera manufacturers are already beginning to feel the impact of camera-phone popularity in the Japanese domestic market, where there are more than 25 million camera -phones in use.

-- Over the study period 2003-2006, camera-phones will reduce the sales of digital cameras by 7.7 percent, for a total of 12.6 million fewer units shipped, and a decrease of more than $2.7 Billion in shipment value.

-- Less than two percent of camera-phone sales will be substitution sales, with the balance consisting entirely of incremental sales.



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