Survey Says: 12.7 Million U.S. Households To Have a Digital Camera by End of 2000

SAN JOSE, Calif.--(BUSINESS WIRE)--July 31, 2000-- One of the more popular consumer products this year will be digital cameras, as 12.7 million U.S. households plan on having a digital camera by the end of 2000, according to a new survey by Gartner Group, Inc. Gartner surveyed 40,000 U.S. households in January 2000, and this survey revealed 5.4 million of the 103 million households in the United States currently have a digital camera. The rapid growth in the market will provide all digital camera vendors with an opportunity to succeed.

"Ninety-eight percent of digital camera sales in 2000 will be to consumers buying their first digital camera, indicating the market is wide open to new vendors that have a better product and bigger advertising budget," said Andrew Johnson, vice president of Dataquest's e-Digital Imaging Devices and Services U.S. program. "New buyers most likely do not have enough personal, hands-on experiences with a particular digital camera model to have developed a strong preference. Word of mouth and third-party recommendations will weigh heavily in their purchase decision."

The Gartner survey found that 40 percent of digital camera households were in high- income households with annual incomes of more than ,000. The study revealed that 60 percent of cameras were owned equally among less-than-,000 households, ,000-to-,000 households and ,000-to-,000 households.

Supply-side data shows that half of the 5.4 million households purchased their first digital camera last year. Digital camera prices last year were on average about , so most households with a digital camera will not rush out to purchase a new one again this year.

This Perspective is produced by Dataquest's e-Digital Imaging Devices and Services U.S. program. This program delivers tactical and strategic advice to digital camera and scanner manufacturers on how to maximize sales and online photo service providers who use digital imaging in their business plan. To purchase the report or subscribe to this program, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.