Digital Camera sales grow

According to the PMA (Photo Marketing Association) website digital camera sales continue to grow as more households switch from their film cameras and upgrade older digital camera models. In my case the camera broke. Plastic body and concrete pavement in Central Park is not a good match. I will buy a new point and shoot digital camera this year for my wife.

In 2004, the market reached 18.2 million units in sales and $5.5 billion in revenue. This is an increase over last year, but growth is slowing. In 2004, digital camera unit sales jumped 40 percent, compared to the 14 percent predicted for this year. As household penetration increases, sales will most likely slow further in 2006.

Revenue increases have lagged behind unit growth as prices fall. Prices, however, are not dropping as quickly as they did when digital cameras went mainstream and higher megapixel models were rapidly entering the market at lower and lower prices. Now, while higher megapixel models are still becoming available, prices of new models are not necessarily dropping; rather, units are being released with more features. The value of camera sales in 2006 will depend largely on what the average camera price falls to.

Camera retailers will likely experience a slow down in digital camera sales over the coming years, and will need to stay diversified in related products and services. Customers will continue to need larger memory cards, camera accessories, batteries, and imaging services that help them utilize their digital photos.

Read IDC report about digital camera sales