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January 13, 2004

Digital Opportunities Emerging

'Once the domain of camera makers and film manufacturers, the consumer photography market is rapidly being overtaken by digitisation....

Perhaps the only certainty is that digital photography is here to stay. Digital camera sales pulled in $10bn in worldwide sales in 2003, while digital printing generated $4bn in revenues last year, according to IDC, the research group....

Excitement about digital photography has fuelled explosive growth in camera sales, while computer makers hope digital photography will help drive a PC upgrade cycle. Home printing has emerged as a key opportunity to exploit and film manufacturers are developing a retail printing infrastructure for digital processing....

Roughly 81 per cent of digital camera owners who printed photographs did so at home in 2003, according to IDC. The ink and photo paper needed to make home prints represent a huge profit pool for groups such as HP and Canon.

But a closer look at IDC's numbers shows that a growing number of digital camera owners are opting for retail printing outlets or online services that charge 29 cents for a 4x6 print, about half of what it costs to print on a HP printer.'

Excerpts from Digital opportunities develop for tech groups

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