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Smartphone domination spells digital camera demise

Posted: 02 May 2016     Print Version  Bookmark and Share

Keywords:ASSOCHAM  digital camera  smartphone  tablet  personal computer 

According to a recent study from ASSOCHAM, sales of digital cameras with heavy discounts have considerably plunged to a mere 35 per cent in the last year while the demand for smartphones has risen by more than 120 per cent. In addition, smartphone sales almost more than doubled from 44 million units in 2013 to 100 million units in 2016. The volume of smartphone sales is forecasted to hit 165 million units by 2017, the study indicated.

The affordable smartphone segment accounts for 78 per cent of all smartphone sales equipped with almost similar features as cameras in the same price range, and thus the craze of digital cameras have almost vanished, said D S Rawat, secretary general, ASSOCHAM.

According to his paper, most of the respondents said that the biggest advantage of clicking pictures with smartphones is that they can be shared instantly with your friends and family; a feature which is absent with most of the point and short cameras, added the paper.

About 93 per cent of the customers now prefer smartphones versus digital camera. The smart phones are becoming the main camera of choice by large number of people and increasingly more consumers are relying on their smartphones instead of compact digital cameras for both still photos and video capture, noted ASSOCHAM.

Tablet and phone domination

Almost 75 per cent of the sales of mobiles and tablets came from consumers' residing in tier 1 and tier 2 cities. As per study, personal computer, MP3 player sales have started declining, and the impact of smartphone and tablet adoption is so great that the number of users accessing the Internet through PCs starts falling.

The digital camera sale has suddenly come down due to large numbers of brands of smartphones at affordable price with multiple buying options. Soaring popularity of smartphones is crushing demand for digital compact cameras amongst the young. The compact camera market is going to keep shrinking in the coming years to come, added the ASSOCHAM paper.

So, the trends shows that a lot of users are buying smartphones with built in cameras, with image quality improving with each new generation. Connectivity also plays a big role, since applications available on smartphone make it easy to send images to Social Networking and photo sharing sites for viewing by others, revealed the paper.

Smartphone cuts digital camera rope

The soaring popularity of smartphones is crushing demand for point-and-shoot cameras, also sharp drop in sales of digital compact cameras marks them as the latest casualty of smartphones as videogame consoles and portable music players also struggle against the all-in-one features.

During 2010-11, 75 per cent of total camera sales in India was contributed by these point and shoot cameras, and the rest contributed by SLR cameras. But in 2015, this per centage dropped to just 30 per cent, and it is expected fall by 2017, only 10-15 per cent of overall sales would occur from this segment. The only hope for the digital camera brands in India now will depend on the forthcoming festive season which is expected to revive the demand.

All three major player camera brands, Sony, Canon and Nikon, have roped in Bollywood stars as their brands ambassadors as well as reaching out to the tier II and III cities in a bid to expand their reach.

There has been a subsequent rise in the demand of smartphones in India in the last one year and one of the reasons behind this growing importance is largely due to the increase in social networking site. Most of the youth in the country share photographs online and upload photographs, which has become a new trend in the metros thus giving rise to the need for smart phones, said Rawat.

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