Gartner Dataquest Says Digital Photography Is Forcing Camera Manufacturers to Reinvent Their...

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--July 18, 2001

New Report Explains How New Business Model Will Revolutionize

Photo Industry

Digital cameras are transitioning the amateur photography industry by changing how consumers take, share and save

Digital camera shipments in the United States are projected to reach 8.9 million units this year and grow to 12.5 million units by 2005. With the continued growth of digital cameras, it's important for vendors to understand how consumers are viewing these pictures. A Gartner Dataquest survey revealed that digital camera owners are more interested in simple electronic viewing and sharing than in making the digital camera deliver the same output (prints) as their film camera. The fact that digital cameras are used differently than film cameras is facilitating a change in the business model.

"When this new business model takes hold, it will turn the photography market on its head. Digital camera manufacturers that embrace this new business model with products and services that monetize the aftermarket value chain will survive," said Andrew Johnson, vice president for Gartner Dataquest's Digital Document and Imaging group. "Camera vendors that do not change and continue to see their role as merely product marketers will be financially challenged because they will not have an aftermarket revenue stream to subsidies their product sales."

While photo printing is not a high priority among digital camera users, Gartner Dataquest research indicates digital camera owners are just waiting for an easier, less-costly, photo output option.

This is expected to be an exciting year for home photo printers. Sony has announced a series of photo printers for digital cameras in which it will join Hewlett-Packard, Epson, Canon, Fujifilm, Olympus and Lexmark/Kodak.

"Bundling of digital cameras and photo printers is a sign of the new business model," Johnson said. "Increasing photo-printing volume will create aftermarket profits, which if significant enough, could subsidize a new round of price cuts on digital cameras, photo printers and the bundles."

More information is available in the Gartner Dataquest report "Digital Camera Market Trends, 2001." This report provides market share and forecasts for digital camera shipments in the United States, as well as analysis of key trends in wireless imaging, imaging software and photo output. This report can be purchased on Gartner's Web site at www.gartner.com. For information on how to subscribe to Gartner Dataquest programs, please call 408-468-8000.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $859 million. For more information, visit www.gartner.com.