The New Look of Camcorders

With the lure of attractive pricing and feature upgrades, digital camcorder sales are projected to inch forward in 2005, following sales dips in the past two years. Manufacturers are hopeful that $300 average pricing and new product designs will stimulate growth as dedicated camcorders face competition from video-enabled cameras. CEA predicts camcorder sales of 4.35 million units in 2005 compared with 3.9 million in 2004. Dollar volume is forecast to inch to $1.4 billion in 2005 up from $1.36 billion in 2004.

 

Source: CEA Market Research, 1/05

The once familiar look of the camcorder is evolving as the storage options for video expand. Tape-based camcorders built around the rectangular MiniDV or 8mm tape still represent the majority of camcorder sales. But a look at the camcorder section at retail in 2005 will show circular designs built around mini DVDs and tiny models the size of cell phones that record to memory card or hard disk drives.

At the mid- to high-end of the camcorder market, higher-zoom lenses, HDTV resolution, widescreen recording formats and improved low light capability will give enthusiasts more bang for the buck. Cell phones and digital cameras will continue to supply the entry level video market with lower resolution, high-compression video for e-mail and Internet use.

While camera phones and digital cameras are delving into video, camcorders are beefing up digital still features as well. Two-megapixel digital still functionality is getting a boost in 2005 to 3 megapixel digital still resolution among many suppliers. JVC challenged the market with a hard-disk-based camcorder offering 5 megapixel still resolution in its Everio camcorder.

New and Noteworthy

On the performance side, suppliers will compete with faster startup time, higher megapixel sensors, longer zoom with image stabilization, and improved quality and longer recording for video. Fashion continues to have strong appeal at retail where consumers’ appetite for compact, style-oriented cameras is pulling even the likes of Nikon, Canon, Olympus and Fuji into the designer camera market.

Lower prices for digital SLR cameras will pump more sales into the enthusiast market, which is getting its share of upgrade business from consumers who entered digital imaging early and now want better resolution. And look for wireless to play more of a role in the digital imaging world. Here are a few of the trendsetters for 2005.

•  Kodak Easy Share One: The 4 megapixel camera e-mails images using built-in Wi-Fi technology. The camera doubles as a photo viewer, storing as many as 1,500 images in 256 MB of internal memory.

•  Nikon D2Hs: Designed for photojournalists and action photographers, the D2Hs is wireless capable, supporting the PTP/IP protocol that enables photographers to control aperture, shutter speed and shutter release from a PC for true remote control operation.

•  Canon Digital Rebel XT: The second-generation Digital Rebel SLR buffs up on startup time, megapixels and customized settings while slimming down on size.

•  Pentax Optio WP: Appealing to snorkelers, skiers and other outdoor enthusiasts, the 5-megapixel Pentax Optio WP is a lifestyle camera waterproof down to 5 feet.

•  Casio EXILIM PRO EX-P505: A hybrid still/video camera, the P505 boasts 5 megapixels, a 5x optical zoom and MPEG4 video capable of 640 x 480 resolution at 30 frames per second.

•  Olympus m-Robe 500i: This handheld portable multimedia device stores images, music and slide shows on a 20 GB hard drive and packs a 3.5-inch LCD screen and 1 MP digital imager for fun.

•  Fujifilm FinePix Z1: A non-extending refractive lens enables a 3x optical zoom lens inside a body that’s thinner than a deck of cards. With start-up time of less than a second, 5-megapixel resolution, enhanced quality for low-light shooting and a 2.5-inch LCD viewfinder, the Z1 sets a standard for designer cameras.

Forecast for 2005

Falling prices, attractive styling and improved ease of use will continue to drive sales of digital cameras through 2005. The market will see more segmentation representative of a maturing category as enthusiasts seek horsepower rather than styling at the high end, while high-value models broaden the adoption market at the entry level. In the middle, consumers will find more megapixels for the buck, a design to reflect their lifestyles, larger viewfinders on the camera back and expanded print options.