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Makers remain viable as they address image resolution and functionality in their latest offerings.
The leading manufacturers of digital still cameras have been shifting their production facilities to mainland China in recent years. This has helped the Greater China region rapidly achieve the distinction of being the world’s biggest production center for the electronic device, with an estimated share of up to 75 percent of global output. Mainland China alone produced 66.95 million digital still cameras in 2006, a 26.75 percent y-o-y increase, according to the China Culture and Office Equipment Association. The trade organization said the output is forecast to exceed 80 million units in 2007. In Taiwan, the annual shipment is expected to reach 50.63 million units this year, a 25 percent growth from 2006, according to the Market Intelligence Center (MIC).
Though the increase in shipments remains solid, makers seem to be trimming down their entry-level and midrange digital still camera output due to fierce competition. The big players already dominate the scene, with more than 90 percent of the mainland’s output estimated to come from factories set by industry leaders and their EMS providers. Conversely, the number of digital still camera makersincluding both local- and foreign-invested companiesthat have manufacturing plants on the mainland is forecast to drop y-o-y from 40 to 30 by yearend. And since the domestic market is inundated with the leading brands, the bulk of the makers’ output is shipped overseas.
Guangdong is a major production hub for digital still cameras. The convenient location has made it easier to import the product’s major components, such as image sensors and SDRAM ICs. In the past two decades, the province has also built a host of support industries for the electronics industryEMS subcontractors, software and hardware solution providers, components suppliers and trading agents.
The new models coming out from both mainland China and Taiwan address image resolution and functionality issues; interviewed makers’ latest offerings are in the high-end range.
In mainland China, manufacturers provide buyers a range of choices, adopting CMOS and CCD sensors for models above 3MP, as well as coming up with software interpolation to achieve higher resolutions of up to 12MP.
The DC-692 from Shenzhen Kingsun Enterprises Co. Ltd is a digital still camera with a 5MP CMOS sensor that can be interpolated to 12MP. It has a 2in TFT LCD capable of 640x480 pixel video capture at 15fps in AVI format. The product has PC camera and voice recorder support, and built-in 16MB flash memory with an SD card slot, flashlight, 8x digital zoom, up to 30cm macro shoot mode, NTSC/PAL A/V output and five white balance modes. iTech Digital Industrial Co. Ltd has a similar offering in the DC-8. The 5MP CMOS unit can be interpolated to 12MP, and has video capture and a voice recorder. It features a 2.4in TFT LCD that can display JPEG, WAV and AVI formats. The DC-8 has 4x digital zoom and built-in 32MB memory with MMC/SD card support.
Providing multifunctionality is also critical for makers to stay viable. Suppliers, especially the Hong Kong- and Taiwan-invested companies, have integrated value-added functions such as MP3 players and portable media players (PMPs) in high-end models to differentiate themselves from leading brands. Several water-resistant cameras have also been released.
Yahee Technologies Corp. Ltd, for example, has unveiled the DC500, a 10MP digital still camera that can record movie clips, play MP3 files and function as a PMP, PC camera and voice recorder. The product has a 2in color LPTS LCD, 8x digital zoom with wide angle lens available, internal 32MB memory with up to 2GB SD card support, built-in pop-up flash and rechargeable Li-ion battery.
Shuoying Industrial (Shenzhen) Co. Ltd also manufactures models that double as MP3 players. To further differentiate itself, the vendor has entered the niche markets such as gifts and premiums, releasing digital still cameras with image resolutions below 2MP in fun, unique form factors such as watches and pens.
According to the MIC, the trend is pushing toward 10MP offerings becoming mainstream in Taiwan by next year. The key product features are optical antishock and backend image processing, which provides modes such as face detection technology. Most interviewed suppliers also plan to continue improving display size, image resolution, focal length and optical zoom ratio.
Other functions and features expected to come up in future models include higher sensitivity to light, wireless integration and GPS logging. The MIC also indicated that a wider range of display panel technologies would be available in the market.
At present, Taiwan manufacturers provide units with resolutions of 5MP to 6MP, 3x optical zoom and 2.5in displays. Most models come with CCD image sensors, but some makers have forecast the arrival of more units equipped with CMOS sensors, which are considered more cost-effective and provide better image quality.
Charman Optical Co. Ltd recently released the DSC500NF, a 5MP CMOS camera with a 2.5in TFT LCD. The new product features 4x digital zoom, an MMC/SD card slot, a USB 1.1 interface and a built-in microphone. The company also uses CCD sensors, such as the one embedded in the DSC-800W underwater digital still camera. The model can be used in depths of up to 45m. It has 5x digital zoom, fixed focus, voice and video recording, nine frame options and four games.
Maxbright Industrial Co. Ltd has model 578, a 5MP CMOS digital camera with a 3in TFT-LCD screen. The unit has an expandable memory, 8x digital zoom, video recording of 640x480 pixels in AVI format and auto power-off. It supports NTSC/PAL for TV output and mini USB 1.1 for PC interface.
One of the newly released models from Life Technologies Co. Ltd is the DDV-1100, which is equipped with a 5.1MP CMOS sensor. The digital camera features a 3in TFT-LCD panel and built-in 64MB memory that can be expanded to 2GB. It can play back MP3 and MPEG-4 files, and supports JPEG, AVI and WAV formats. It has several operation modes, is able to record video or voice, play music, or functions as a Web camera or mass storage device.
Most makers predict prices to remain stable or increase by 10 percent in the next six months, citing the rising cost of key raw materials and intensifying competition. A few manufacturers, however, project a price decrease amid a maturing industry where even top brands are forced to offer models at cheaper prices.
In mainland China, low-end models of the 100KP to 300KP variety are quoted below $17, while 1.3MP models with 1.5in TFT-LCD panels and 4x digital zoom are priced at $22. The midrange market offers 2MP and 3MP models that feature 1.5in to 2in TFT LCDs. This product category usually includes built-in memory, an SD/MMC card slot, flash, 3x to 8x digital zoom and a voice recorder as supplementary functions. The price starts at $21 for a 2MP model with video capture and PC camera capability; a 3MP unit with 4x digital zoom, built-in Li-ion batteries and JPEG, AVI and WAV format support starts at $35. It could go as high as $56 with a 2in TFT-LCD panel, 8x digital zoom and A/V out. In the high-end range with 5MP to 7MP resolution, the price starts at $40 for a model with a 2in TFT-LCD panel, 4x digital zoom and internal memory capacity of 8MB to 32MB with an MMC/SD card slot. Such units can be interpolated to 8MP to 12MP. Offerings with MP3 and MP4 players/recorders can be priced as high as $65.
Digital cameras with 5MP resolution from Taiwan suppliers would be priced below $130, while 6MP models go from $130 to $150. 7MP models could reach up to $200 or more.
Shuoying has a 3,600sqm factory in Shenzhen, Guangdong, with a total of 800 workers. The factory can make 300,000 digital still cameras a month, while the average output is about 250,000 units. Cosmetic designing, mold making, plastic injection, metal machining, SMT, PCB subassembly, final assembly painting and silk-screening are all conducted in-house. As an export-oriented company, Shuoying ships 96 percent of its digital still cameras overseas. The EU is listed as the company’s largest overseas market, cornering 35 percent of the exports, followed by North America and Asia, which share 25 percent and 20 percent, respectively.
Yahee employs 400 staff and holds an 18,000sqm factory in Shenzhen. The factory is equipped with 11 production lines and conducts cosmetic design, mold making, plastic injection, metal machining and final assembly in-house. The company can produce 100,000 units of digital still cameras per month, and the actual output is about 80,000 units. North America is the company’s largest overseas market, accounting for 35 percent of export sales, followed by the European Union with 30 percent.
Shenzhen Kingsun has a 3,000sqm factory in Shenzhen. The ISO 9001:2000-certified company can produce 30,000 digital still cameras a month, against an average monthly output of just 5,000 units. The company ships all output overseas. The EU is the company’s largest overseas market at 69 percent. Asia and North America take 20 percent and 10 percent of the exports, respectively.
In Taiwan, interviewed makers Charman, Maxbright and Life Technologies all provide both own-brand products and OEM/ODM services.
Most of Charman’s manufacturing processes are done in-house. The company has one factory with 12 product lines in mainland China. It mainly exports its products to the United States, Europe, South America, Japan and Australia. The company is developing digital cameras with optical zoom and underwater digital cameras with optical zoom.
Maxbright, established in 1983, produces digital cameras, battery chargers and digital flash. The company employs about 1,200 staff members and can turn out a monthly capacity of 200,000 units.
About 80 percent of Life Technologies’ sales come from DigiLife, its own-brand business. The rest come from OEM and ODM contracts. About 80 to 90 percent of sales come from overseas, mainly from the United States, East Asia, Southeast Asia and the Middle East. The company does R&D, ID design and QC in-house at its factory in Taoyuan, ensuring product quality and quick delivery.