Entry-Level VGA Cameras Drive U.S. Digital Camera Market with 214% Growth from 1Q00-2Q00, According to IDC

FRAMINGHAM, MA – AUGUST 28, 2000 – Entry-level VGA cameras, which offer fewer features and lower price points than standard point-and-shoot cameras, are becoming a driving force behind the rapidly expanding digital camera market. According to new research from IDC that covers a wide range of digital photography solutions, U.S. VGA digital camera shipments soared to 565,000 units at the end of 2Q00, a 214% increase over the previous quarter.


Nonbranded, "white box" cameras led the charge in this growing segment of the market, as many of these cameras were shipped to various Internet companies as promotional incentives for attracting new customers. "The entry-level VGA camera has wide appeal and specifically targets mainstream consumers," said Chris Chute, research analyst with IDC’s Digital Camera program. "As price points continue to fall, and more and more people get online, the demand for digital imaging will continue to grow."

In addition to nonbranded players, traditional vendors are also making an impact in the VGA segment. Polaroid leads the way with shipments of 265,000, a 36% share of the market in the first half of 2000. KB Gear has also been successful in this space grabbing 9% of the market. These vendors are getting in consumers’ faces by aggressively expanding into the mass merchant and computer superstore retail channels, carving out deals with Kmart, Target, Circuit City, Best Buy, etc.

The more robust point-and-shoot segment of the digital camera market has also made great strides recently. U.S. shipments in this market reached 1.06 million in 2Q00, a 55% increase over the first quarter. Sony tightened its grip on the top position of this market by grabbing 31% market share.

Overall, the pricing of imaging technology is dropping, and cameras are becoming more user friendly. As these trends continue, the base of potential users keeps getting larger and the outlook for this industry is extremely promising. For more information or to purchase IDC’s report Second-Quarter and First-Half 2000 Digital Camera Market Share Update (IDC #B22892), please contact Patrick Steeves at 508-988-6787 or psteeves@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 600 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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