Camera phones threaten Kodak's disposable camera business

As Kodak's film sales plummet, one of the few bright spots for the Rochester, N.Y.-based company has been sales of disposable film cameras. But camera phones could cut into this business, according to an article on the WHEC-TV Rochester, N.Y. Web site.

The article quotes the owner of what I assume is a local camera store as well as a former Kodak executive and imaging consultant who discuss the value of camera phones.

Scott Simms of Scott's Photo says, "Instead of carrying a camera, and carrying a phone, you can carry one piece and talk and take pictures and print them and share them. It'll be a lot of fun."

Verification, not assumptions

However, the article only says Kodak's film sales are down. It doesn't include any statistics or proof that camera phones are reducing sales of disposable cameras.

I have no doubt that camera phones are cutting into sales of single-use film cameras and that trend will accelerate as more people purchase better quality camera phones. One megapixel camera phones and above will decimate the disposable camera business in many countries.

But proof, rather than assumptions, are required to document this trend.

Comments

[Daily Reader]

partly answered my own earlier question...
found this free report on PMA website with some recent data

Photo Industry 2004: Review and Forecast
http://www.pmai.org/new_pma/Marketing_Research/Photo%20Industry%202004.pdf

it doesn't have worldwide figures, but for US market, one-time-use film camera sales projections for 2004 are 222M units, a 5% growth - but down from 7% growth in 2003 and 17% growth in 2000

it's not clear how much of this market is currently the same market as the people buying cameraphones. however certainly the bulk of the disposable buyers are looking for convenience and cheap decent quality prints.

you can find other reports here - though some only avail to members
http://www.pmai.org/new_pma/1028/default.asp

[tychocat]

I suspect the real questions behind the speculation of the impact camera-cellphones could have on the film-camera market, is who buys what sorts of camera, and why; and who uses camera-cellphones, and why.

I might guess the camera industry has already done marketing studies on their buying public (though the last time I went into a camera store, the only question the clerks asked me was, "How much do you want to spend?"). What needs to be done are similar studies of the cellphone-camera population. Assuming standardized studies are feasible, any overlap would probably be the vulnerable market.

The only times I've touched a film camera in the two years I've had my little VGA cellphone, was when I doing a favor for someone else.

[Daily Reader]

I agree with your comment that it would be better to offer some proof rather than assumptions to stories like this.

A couple years ago, I recall a PMA or other report stating that single-use film camera sales worldwide were somewhere between 300-400Million/yr, and still growing at a rate of 9 or 10%/yr (faster in some overseas markets). Not insignificant - and perhaps larger than many people realize.

But I have not seen any such figures for 2003, or projections for this year forward.

anyone heard such numbers? It would be interesting to see.

another comment - the reason people like these disposable film cameras is cheap price and convenience to get PRINTS. Until cameraphone image quality improves a lot (and I don't mean simply more megapixels), I don't think the print aspect of that market is going to be simply REPLACED. Until then, cameraphones will undoubtably ADD a lot of new image capture devices to the market, with new ways to share photos. But there's still a lot of people that want prints.