NPD INTELECT Sees Digital Imaging Going Mainstream

PORT WASHINGTON, NEW YORK, February 29, 2000– Digital imaging technology went mainstream in 1999, illustrated by sharp U.S. sales increases in the digital still camera and digital camcorder categories. According to leading marketing information provider NPD INTELECT, digital still cameras posted $1 billion in sales in 1999. Digital camcorders entered the marketplace and, in 18 months’ time, captured almost 6% of the overall camcorder market, up from nearly nil in 1998. Considering the relatively recent introduction of digital imaging products to the marketplace, digital cameras and digital camcorders have emerged as serious contenders in consumer electronics and photography.

Portable Digital Still Cameras Top $1 Billion in Sales

The digital still camera market reached $1,004,381,000 in 1999, an increase of 63% over 1998. The category posted unit sales of more than 1.8 million units. Digital still camera dollar sales comprised 36% of the total camera market in 1999, up from 26% in 1998.

As in 1998, Sony took the top spot in sales for the category in 1999, claiming 47% dollar share, up from 42% in 1998. Olympus was next with 17% dollar share of digital still cameras in 1999.

Neil Portnoy of NPD INTELECT observed that Polaroid’s November and December introduction of products at lower price points made Polaroid the first manufacturer to have success in marketing digital still cameras in the mass merchant channel. “I expect the growth of digital camera sales to continue as price points stabilize. In addition, manufacturers’ promotion of new digital technology positively impacts other photography categories, including 35 mm and APS. It is interesting to note, with all the talk about digital cameras, sales of 35 mm SLR cameras grew 25% in 1999 over 1998,” Portnoy said.

Data collected in a 1999 NPD Online Research study indicate that increased use, both professional and personal, of digital still cameras may lead to new opportunities for providing or supporting digital imaging products and services. In particular, growing commercial use of digital still cameras could mean increased demand for higher priced, higher quality, and more technologically advanced products for advanced commercial applications. The survey of Web users who own digital still cameras determined that half of respondents use their digital still cameras for both business and pleasure. Among online digital still camera owners who use their cameras for both business and personal applications, 61% use their digital cameras four hours per week or more. Respondents’ most frequent use of their digital images is sharing photos via e-mail.

Digital Camcorders Came From Nowhere; Claimed Significant Share of Camcorder Market

According to NPD INTELECT’s 1999 year-end data, digital camcorder sales topped $532 million, a significant leap from 1998’s dollar sales of $93.2 million. Unit sales topped 524,000 units in 1999. Digital camcorder dollar sales comprised 5.8% of the total camcorder market in 1999, compared to 0.1% in 1998.

In the digital camcorder market, Sony took the lead in 1999 sales, claiming 67.5% dollar share in 1999. JVC was next with 22.2% dollar share.

Price and performance drove digital camcorder sales in 1999, according to NPD INTELECT analyst Tom Edwards. Digital camcorders’ unique features add to their value when compared to standard camcorders. “Optical zoom, digital electronic zoom, image stabilization and LCD viewing screens are among the product features that set digital camcorders apart from their traditional ‘point-and-shoot’ camcorder counterparts. The 1999 sales growth in the digital camcorder category is part of a larger digitization phenomenon that includes High Definition Digital Television, Direct Broadcast Satellite Receivers, DVDs, CDs and other advanced digital products, ” Edwards said.