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Digital Camera Market Growing Fast in China
Aug 18, 2004
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The first half of 2004 saw 1.05 million digital cameras sold on the Chinese mainland market, more than threefold the sales in the same period last year. Revenue reached 2.65 billion yuan (approx. U.S. $320 million), up 278.9 percent from 1 year earlier, according to CCW Research.

Experts attributed the strong sales to falling prices, rising domestic demand, mushrooming digital photo shops, and the growing popularity of Internet surfing.

Japanese companies remain the dominant force in the Chinese market. Sony, Canon, Kodak, Olympus, and Fuji together hold a 50 percent strong stake.

Heated competition has inevitably brought price wars. To date, a mainstream digital camera costs some 2,500 yuan (approx. $300) in the mainland market. On the other hand, the popularity of camera phones, some featuring a resolution of 300M pixels, is making life harder for low-end digital camera manufacturers.

The digital camera peripherals market was also given a shot in the arm.

Experts predict that the digital camera boom would create a billion-dollar industry in 3 years. CCW Research foresees a 120 percent all-year growth of the digital camera market in 2004. (XIC)

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