Archive for the 'Electronics' Category

At an engagement ceremony I attended this October, every one of the guests was a photographer, clicking away at this, that or the other all the time. Not only have you seen this; over the past couple of years you’ve clicked your way through a few ceremonies/parties/gatherings too.

Except that things have changed somewhat: in 2006, your fellow shutterbugs probably used point-and-shoot digital cameras. Chances are they were using their mobile phones at that last ceremony. Chances are that you were too.

No surprise; consider this. The current installed base of mobile phone cameras is 1.9 billion, up from nearly zero 5 years ago. In contrast, the camera industry only ships 100 million (one-tenth of a billion) devices a year.

Whatever happened to the standalone camera industry? And how long, you might also ask, before they fade into oblivion?

I think the answer to the first, discussed in this post, is that the camera industry stopped innovating.

For years, the Megapixel ruled. Consumers bought a new digital camera based solely on “how many MP it had”, fed by copious advertising  by manufacturers promoting this very lust. So, roughly, 3 Megapixels in 2002 went to 5 in 2004 to 7 in 2006 to 8 now (perhaps even 10) – and stopped.

At some point – perhaps a couple of years ago – folks began to realize that the pictures they were clicking with their existing digital camera were good enough. When they wanted an upgrade and looked around, all they saw were more Megapixels. Clearly, no one was listening to them. Camera manufacturers – Sony, Nikon, Kodak, Olympus and others – probably thought they didn’t have to. Even if existing owners didn’t upgrade, there were so many first-time camera buyers out there. You didn’t have to own a larger slide of the pie if the pie itself was expanding.

This is where the camera manufacturers made their big mistake. At that very time, mobile phone manufacturers were busy embedding tiny 1 and 2 megapixels cameras into their devices. Millions of would-be-first-time-digital-camera buyers bought Rs. 9000 phones and suddenly found themselves with a ready digital camera. The photos were grainy and often out-of-focus, but hey – the camera now fit into their pocket, and was always with them to capture moments with friends, on the bus, in the train, on the street, at home, at outings, gatherings, ceremonies, parties, everywhere. Suddenly, the lure of the Megapixel didn’t hold sway at all. What mattered was that this little camera was always there. It also helped that the same block of plastic was, often, a music player, video player and recorder, radio and, occasionally, Internet browser.

Guts.

By this time, the camera manufacturers had had their first “uh-oh” moment, as sales of phone-enabled cameras shot through the roof. They scrambled back to appeal to their base of existing owners, attempting to sell them on something other than MP. So you began to hear noises about everything ranging from image stabilization to multiple face-recognition.

But the mobile phone industry wasn’t idle either. While the first generation of mobile phone cameras were dreadful, the second wasn’t. Mobile phones that cost around Rs. 15000 to Rs. 20000 – the price range of a good point-and-shoot digital camera – were now sporting 5 megapixel cameras (more than what consumers wanted), advanced lens technology (for instance, the Carl-Zeiss lenses in the top-end Nokia Nseries cameras), great flash (the Xenon flash in the Nokia N82) and customizable settings on par with their standalone counterparts. In other words, phone cameras were as good as standalone digital point-and-shoot cameras. The choice for buyers was now between i.) their existing camera plus a few incremental features, and ii.) their existing camera +  music + web + maps + video + kitchen sink. Making that choice was easy.

The female of the species is deadlier than the male. Unquestionably.

Next – what the camera industry can do to stay relevant in the coming years.