Digital cameras may seem a thing of the past for the average customer. Their basic photography needs can easily be met by smartphones as their cameras have become much better and on par with any digital camera in the market. customers did not feel the need to buy a digital camera separately as they transitioned to clicking photographs with their smartphones. The status of the digital camera industry and the reasons for the decline in sales are discussed below:
Global digital camera sales are not exhibiting a promising trend. The global digital camera sales have plummeted by a massive 84% since the year 2010. The digital camera industry was doing very well during 2007 and 2008 when the first generation of smartphones was being launched in the market. According to the data provided by Camera and Imaging Products Association (CIPA), the global sales for digital cameras peaked in the year 2010 at 121.5 million units. It has since then seen a steady drop year on year and has hit the rock bottom in 2018 with sales of only 19.4 million units. The global digital camera shipments were reduced to only 935,148 units in February 2019, further down from the 1.01 million units shipped in January 2019. A steady decrease was also observed in the interchangeable lens camera market also as global shipments dropped from 798,014 in February 2018 to 521,217 in February 2019.
The global digital camera sales peaked in 2010 when the smartphone market was still in nascent stages. The digital camera industry did not face any stiff competition from the smartphone manufacturers and customers had to purchase digital cameras for taking photographs. However, with the advancement of camera technology in smartphones, the dynamics for the digital camera industry changed completely. Customers started preferring to click photographs with their smartphones. With high-resolution camera sensors and AI technology incorporated into smartphone cameras, these cameras can easily compete with some of the best digital cameras in the market. The customers also find it more convenient to use their smartphone for photography on the go, instead of carrying another digital camera with them. it is also more convenient to click photographs on your smartphones and instantly upload them into your social media accounts.
The digital camera industry has to either diversify their businesses and look for other revenue streams like Canon diversified with printers. They can also provide unique and more refined products to the customers to attract them.
Digital cameras may seem a thing of the past for the average customer. Their basic photography needs can easily be met by smartphones as their cameras have become much better and on par with any...