World Digital Camera Output Survey Shows Production Continues To Soar

The soaring production of digital still cameras, one of the digital products that represents Japanese makers' world leadership in that field, seems to have no end, Nikkei Business Publications reported. The digital still camera defined here is one equipped with a color liquid-crystal display. Those without LCDs, or the so-called toy cameras, are not included.

According to Nikkei Market Access survey, the world's production of digital cameras showed a jump of 59.7 percent in 2002 from the previous year to 26.6 million units, and the growth rate in 2003 is expected to come close to what it was a year before.

Nikkei Market Access estimates that worldwide digital camera output will be about 39.07 million units, up 46.8 percent from the previous year. The high growth rate of the world's digital camera market is continuing, with no turning point in sight, despite predictions that a slower growth period would begin around 2002. The market has been extremely bullish since the onset of 2003.

Usually, production sharply declines in the first quarter compared with the previous quarter due to seasonal changes, but the scope of decline was small in 2003. Although the first half of 2003 was struck with various factors that could cool off demand for digital cameras, including the Iraq war and the spread of SARS, the makers' shipments seem unaffected for the time being. In particular, shipments to Europe continue at the rate of doubling the figure recorded in the same term a year ago, the report said.

There have been views that the progress of higher pixel camera-loaded mobile phones in Japan might cool down the digital camera market, but so far sales in the Japanese market have not been affected by camera-equipped mobile phones.

Amid the high growth rate both at home and abroad, Japanese digital camera makers remain bullish about their production plans. Canon's growth picture is particularly noteworthy. Until a few years ago, Canon ranked low among the top 10 makers in production share, but has made steady progress since 2000, and now aims at grabbing the top share. Many electronic parts makers expect that Canon will turn out more than 8 million units in 2003, the report said.

Sony, which has always had the top share, estimated in April 2003 that its sales volume for FY2003 (April 2003 - March 2004) would be about 8 million units, but later revised it upward to 10 million units.