Within two years, low-end camera phones will take much of the market share now held by low-end standalone digital cameras. ABI Research principal analyst of global wireless operator research Kenneth Hyers says, "We believe that within the next two years, the quality of a mobile phone camera will be such that people won't need low-end standalone digital cameras. This will dramatically impact camera sales."

ABI Research's new study "Mobile Phone Imaging: Opportunities for Driving Usage of Camera Phones through Click/Send/Print" identifies the drivers for camera phone growth, explains how mobile imaging will evolve, and discusses why camera phones will eventually displace portions of the standalone digital camera market.

Within a short period, says Hyers, the typical 1.3 megapixel camera phone will be ubiquitous, and 5 megapixel models will not be uncommon. "We are in the midst of a megapixel race," he adds, "and by early 2006, 1.3 megapixel models will outsell VGA camera phones; in the following years, two-, three- and four-megapixel devices will replace the lower specification models." At the higher end of the range, the rest of the camera phone components grow in importance: is the software sufficient to make sense of the data? Is the lens good? Is the zoom accurate?

Hyers believes that the market will organize itself in tiers of quality. "Certain manufacturers, such as Motorola, are targeting the low end of the market, which is fine for getting enough inexpensive devices out there. But you've also got to have some higher-end models with greater resolution and better lenses, such as models being produced by Sony Ericsson, Samsung and Nokia, which establish them in consumers' minds as makers of prestige, high-quality imaging devices."

And the final requirements for success? Adequate storage capabilities; MMS interoperability among carriers (this is now in place throughout Europe and is becoming standardized in North America); and improved imaging and picture-management software.

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1. Posted by GaymBoi	Thu Aug 11, 2005 10:25 am
You could really expand the question to ask: will phones replace low end cameras AND mp3 players? The phones really need storage to be successful at either task. You would think they could build a phone that accepts a CF or SD card. The new Sony Ericsson TalkMan (my name for it, I think it is the W800) is the 1st phone I've seen that has removable storage. As time goes on, I think we will see more and more phones with removable storage, and the mp3/camera markets will definately be affected-- who wants to carry around multiple devices? </GaymBoi>
2. Posted by spivey78	Fri Aug 12, 2005 2:04 pm
You could really expand the question to ask: will phones replace low end cameras AND mp3 players? The phones really need storage to be successful at either task. You would think they could build a phone that accepts a CF or SD card. The new Sony Ericsson TalkMan (my name for it, I think it is the W800) is the 1st phone I've seen that has removable storage. As time goes on, I think we will see more and more phones with removable storage, and the mp3/camera markets will definately be affected-- who wants to carry around multiple devices? </GaymBoi> It seems like the trend is moving in the way of more storage. Some of the newer phones have the removable storage and I would guess that more phones coming out in the near future might have them as well. We will see.
3. Posted by Frost	Tue Aug 16, 2005 12:09 pm
I have and love the SE S710a I have removable storage, I have a 1.3 MP CCD lens camera, And I have a MP3 player. This works great for the pictures I take. I dont use a camera very often but when I do want/need too I always have my phone. And When Im at the gym i have head fones for the S710a (came with it) that play my MP3's for me. so the S710a is really taking the market. My only complaint is the battery life, when you use the features it has a lot the battery does not last AT ALL> so. removable storage...check....low end dig camera....check.......better batt life? still needs some work....

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