Worldwide Consumer Digital Camera Forecast Summary:

February 20, 2008 Abstract Worldwide Consumer Digital Camera Forecast Summary: 2007-2012 Report Fast Facts Published: February 2008 Pages: 36 Figures: 18 Tables: 16 Price: $4,235 Order Information To place your order today, contact Michelle Boczanowski at 781.616.2100 or via e-mail michelle_boczanowski@ infotrends.com Abstract The Worldwide Consumer Digital Camera Forecast Summary for 2007-2012 highlights worldwide market trends for consumer digital cameras. It also presents unit shipments, revenues, resolution trends, and vendor unit share for North America, the EMEA (Europe, Middle East, and Africa) region, Japan, the Asia-Pacific region, and Latin America. Detailed coverage of the Western European and North American markets is provided in our separate forecast reports on these regions. About InfoTrends InfoTrends, a Questex Company, is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industries. We provide research, analysis, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. To learn more about our company, visit www.infotrends.com. 2008 InfoTrends, Inc. www.infotrends.com Headquarters: Europe: Asia: 97 Libbey Industrial Parkway 3 rd Floor, Sceptre House Hiroo Office Building Suite 300 7-9 Castle Street 1-3-18 Hiroo, Shibuya-ku Weymouth, MA 02189 Luton, Bedfordshire Tokyo 150-0012 United States United Kingdom, LU1 3AJ Japan +1 781 616 2100 +44 1582 400120 +81 3 5475 2663 info@infotrends.com euro.info@infotrends.com info@infotrends.co.jp

Table of Contents Executive Summary... 4 Introduction... 5 Methodology... 5 Digital Camera Product Segmentation... 5 Worldwide Consumer Digital Camera Market Trends... 6 Pixels Continue To Count... 6 Digital Imaging becomes a System rather than Stand Alone Products... 6 Repeat Buyers Become the Mainstay of the Digital Camera Market... 6 DSLRs Become Point & shoot Cameras with Interchangeable Lenses... 7 In-Camera Software Becomes Differentiating Factor... 7 New Vendors Enter the Camera Market... 7 Wireless Connectivity: Ready to Take Off?... 7 A Personal Product... 8 Video Content Grows... 8 Photo Printing Options Continue to Expand... 8 Worldwide Consumer Digital Camera Forecast... 9 Units... 9 EMEA Region... 9 North America... 10 Japan... 10 Asia-Pacific... 10 Latin America... 11 Revenues and Average Selling Prices... 13 Forecast by Product Segment... 15 Digital SLRs... 15 Point & Shoot... 16 Resolution Trends... 17 Vendor Market Share... 19 Regional Digital Camera Forecasts... 22 Western Europe, Eastern Europe, Middle East, and Africa (EMEA)... 22 North America... 24 Japan... 27 Asia-Pacific... 29 Latin America... 32 Conclusion... 34 Appendix: Data Tables... 35 Worldwide... 35 Europe, Middle East, and Africa... 35 North America... 35 Japan... 36 Asia-Pacific... 36 Latin America... 36 www.infotrends.com - 2-2008 InfoTrends, Inc.

List of Figures Figure 1: Worldwide Digital Camera Forecast, Unit Share by Region, 2006-2012... 11 Figure 2: Regional Unit Share Forecast (%), 2006-2012... 12 Figure 3: Worldwide Digital Camera Revenues by Region ($Millions), 2006-2012... 13 Figure 4: Worldwide Revenue Share (%), 2005-2011... 14 Figure 5: Unit Share of Point & Shoot Cameras and Digital SLRs, 2006-2012... 16 Figure 6: Revenue Share of Point & Shoot Cameras and Digital SLRs, 2006-2012... 17 Figure 7: Worldwide Pixel Segment Unit Share (%) Forecast, 2006-2012... 17 Figure 8: 2007 Estimated Worldwide Vendor Unit Market Share... 21 Figure 9: Digital Camera Unit Forecast for the EMEA Region (K), 2006-2012... 22 Figure 10: 2007 Estimated Vendor Market Share for the EMEA Region... 24 Figure 11: Digital Camera Unit Forecast (K) for North America, 2006-2012... 25 Figure 12: 2007 Estimated Vendor Market Share for North America... 26 Figure 13: Digital Camera Unit Forecast (K) for Japan, 2006-2012... 27 Figure 14: 2007 Estimated Market Share for Japan... 28 Figure 15: Digital Camera Unit Forecast (K) for the Asia-Pacific Region, 2006-2012... 29 Figure 16: Unit Share Forecast by Country (%) for the Asia-Pacific Region, 2006-2012... 30 Figure 17: 2007 Estimated Vendor Unit Market Share for China (%)... 32 Figure 18: Digital Camera Unit (K) Forecast for Latin America, 2006-2012... 33 List of Tables Table 1: Digital Camera Product Segments Price Range and Feature Set, 2007... 5 Table 2: Digital Camera Unit Forecast by Region (K), 2006-2012... 11 Table 3: Worldwide Digital Camera Unit Share, 2006-2012... 12 Table 4: Worldwide Digital Camera Revenues by Region, ($M), 2006-2012... 13 Table 5: Average Selling Price ($USD) by Region, 2006-2012... 14 Table 6: Worldwide Consumer Digital SLR (<$2,000) Forecast, 2006-2012... 15 Table 7: Worldwide Point & Shoot Forecast, 2006-2012... 16 Table 8: Pixel Segment Unit Forecast (K), 2006-2012... 18 Table 9: Worldwide Vendor Unit Market Share (%) 2004-2007... 21 Table 10: Digital Camera Forecast for the EMEA Region, 2006-2012... 23 Table 11: Digital Camera Forecast for North America, 2006-2012... 25 Table 12: Digital Camera Forecast for Japan, 2006-2012... 27 Table 13: Digital Camera Forecast for the Asia-Pacific Region, 2006-2012... 30 Table 14: Country Population, Per Capita GDP, and GDP Growth Rates... 31 Table 15: Digital Camera Forecast for Latin America, 2006-2012... 33 Table 16: Country Population, Per Capita GDP, and GDP Growth Rates... 33 www.infotrends.com - 3-2008 InfoTrends, Inc.

Introduction This worldwide consumer digital camera forecast provides a top-line, five-year forecast for the EMEA (Europe/Middle East/Africa) region, North America, Japan, the Asia-Pacific region, and Latin America. It also provides an analysis of the worldwide market trends for digital camera vendors. Methodology The forecast methodology in this report is based on a supply and demand model, comparing actual shipments from previous years and studying potential user demand. It involves studying related case histories as well as considering new technological developments and market trends. The forecasting process is supported by direct contact with manufacturers and suppliers as well as the utilisation of secondary sources and end-user research data. The views of sales and marketing managers about market manufacturers in terms of shipments, market share, competitors market shares, future products, market trends, technology developments, and market feedback were obtained through interviews. The information from competing vendors was used to create a balanced picture of the current market regarding units shipped and revenues. Shipment data has been cross-checked against other sources and data from competing vendors. Additionally, InfoTrends factored in the results of its end-user studies. Adjustments were made when model shipments quoted by the vendor were not justifiable or when vendors did not disclose all information. Digital Camera Product Segmentation The consumer digital camera forecast covers sub-$1,000 point & shoot cameras and sub-$2,000 consumer digital SLRs. Toy cams (sub-$100 cameras), digital zoom-only cameras, and professional digital SLRs (priced over $2,000) are not included in this forecast. For a forecast and evaluation of camera phones, please refer to InfoTrends camera phone market forecast. The Table below highlights the standalone digital camera segments. The segments covered in this report are in bold text. Digital Camera Product Segments Price Range and Feature Set, 2007 DC Segments Price Range Current Sensor Resolution Zoom Image Display Toy cams Sub-$100 Up to 5 million pixels None or Digital None Point & shoot $100 - $999 VGA to 10 million pixels Usually Optical Yes Consumer Digital SLR Professional Digital SLR Under $2,000 Over 5 million pixels Interchangeable lenses Over $1,000 Over 5 million pixels Interchangeable lenses Yes Yes www.infotrends.com - 4-2008 InfoTrends, Inc.

Executive Summary As the digital camera market matures, vendors are likely to search out revenue streams beyond selling hardware. During the forecast period, digital camera vendors will invest in methods that will help consumers store, manage, and share their digital photos. Vendors will either build their own digital ecosystems or partner with technology and service providers to deliver these functions to their customers. Wireless-enabled digital cameras were announced initially by Kodak in 2005. At the same time, however, the wireless functionality in digital cameras is currently limited. As other devices (e.g., digital photo frames, printers, and televisions) gain wireless connectivity abilities, more services will be created to enable wireless CE devices to easily and seamlessly exchange information. Worldwide Consumer Digital Camera Market Trends During the forecast period, the consumer digital camera markets in North America and the EMEA region will transition from rapidly growing markets to slowing markets. On the other hand, the booming Chinese and Indian economies will take up the slack and ensure continued growth for the worldwide digital camera markets. Consumers in the new growth markets are typically first-time buyers who are more price-sensitive than consumers in North America and Western Europe. Therefore, digital camera vendors that wish to succeed in the Asia-Pacific region will need to adjust their pricing and product features to reflect the demands of these markets. Continued pressure on digital camera prices means that only vendors with economies of scale are likely to make profits. This section highlights some of the market trends that impact the worldwide digital camera market. This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies. We believe that the sources of information on which our material is based are reliable and we have applied our best professional judgment to the data obtained. www.infotrends.com - 5-2008 InfoTrends, Inc.

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