| May 19, 2003 |
|
30-Second Briefing By Ed de la Fuente |
| Will cameras in cell phones live up to the hype? |
|
In the U.S., the cellular phone is primarily
a voice communication tool. Although there is currently a great amount of
wireless industry hype around cell phone-based photography, I expect
consumer adoption of camera handsets, which are perceived to be an
entertainment device, to be slower than for other advanced services such
as Text Messaging (SMS), and push Multi-Media Messaging (MMS).
The situation is different in Europe and Japan where much of the hype has been derived. In these markets where landline service is more difficult and more costly to obtain than in the U.S., the mobile phone has developed into a general communication tool and entertainment device, typically with higher penetration rates. Here, mobile Internet access, text messaging and mobile games substitute for the ubiquitous Internet access we enjoy in the U.S. Also, while U.S. consumers have quickly adopted digital cameras, (34% of the population according to a January 2003 survey by Arbitron/Edison Media Research), I don't believe that combining a camera to a wireless handset adds more, than it detracts from, the photographic experience for most consumer segments. And at least for now, U.S. cell phone users are hesitant as well. Recent consumer surveys addressing interest levels for new wireless services indicate a higher interest level for enhanced communication features (e.g., e-mail, text messaging, PDA) than for the incorporation of a digital camera. For example, a Telephia/Harris Interactive survey in July 2002, found twice as many wireless users wanted voice dialing or e-mail capability than a camera on their next handset. Of course there are niche markets for any product. The youth market and certain business verticals will be great markets for camera handsets and it may someday become the ubiquitous wireless device. But between now and then there are other features and services that consumers will spend more of their "cell phone" dollars on. |
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