STUDY OF EMERGING CONSUMER DIGITAL CAMERA MARKET FORECASTS CHANGING COMPETITIVE DYNAMICS

STUDY OF EMERGING CONSUMER DIGITAL CAMERA MARKET FORECASTS CHANGING COMPETITIVE DYNAMICS

Future Image research report analyzes strategies of the top eight digital camera manufacturers; surveys customer satisfaction issues.

(San Mateo, CA) June 3, 2002 — The shift in photography from film to digital is now in full force, with the top digital camera vendors setting their sights on the mass consumer market. Eight companies — Canon, Fuji, HP, Kodak, Minolta, Nikon, Olympus, and Sony — are best positioned to expand from the high-ground they have gained with early adopters to a leading position in the broad-based consumer market. The shift requires, however, that they make dramatic changes in product development, channel strategy, and marketing communications.

Future Image, Inc., the leading research and analysis firm for the digital imaging industry, analyzes these changes and how they match up with the requirements of customers in its latest research report: "Digital Cameras: The Battle for the Emerging Consumer Market."

The 93 page report examines the dynamics of the battle that has now begun for brand supremacy, the strengths and weaknesses of each of the vendors, and their go forward strategies. It includes:
* Extensive interviews with key executives at Canon, Fuji, HP, Kodak, Minolta, Nikon, Olympus, and Sony.
* Results and analysis of Future Image's primary customer survey regarding the necessary resolution for digital cameras, the desirability of other features, printing trends, and buying recommendations.
* In-depth independent testing and review of the product lines of each manufacturer.
* Future Image's assessment and competitive outlook for each manufacturer.
* Listings of the product line of each vendor with key specifications.
* Tables summarizing: Sensor resolution, optical zoom factor, zoom range, storage type, LCD size, camera size and weight, and price for all the models offered by the eight top vendors, ranked alphabetically, by price, and by resolution. These include the latest (May 02) product releases from Kodak, Nikon, Olympus and Sony.

Specific findings from the report include:
- The top eight vendors are unanimous in believing the mass consumer market is now ready for digital cameras, and are focusing their product development and marketing accordingly.
- Owners of 3 Megapixel cameras are overwhelmingly satisfied with their camera's ability to produce 8x10 prints whether on Inkjet printers (80.2%) or through services that offer silver halide printing (73.6%).
- There is very little difference between owners of 3 and 4 Megapixel cameras with respect to satisfaction with 8x10 prints, indicating that 3 Megapixels may be the "magic number" vendors have been looking for.
- Consumers are increasingly aware of the importance of lens quality, as distinct from resolution, with 70% rating it as very or somewhat important.
- Early adopters are a powerful influence on brand adoption, not only by recommending cameras to friends and family, but by purchasing them as gifts.

"The early adopters wanted increasing resolution every year, and that is what digital camera companies have relied on for their marketing — until now," says Paul Worthington, Future Image's Senior Analyst for Consumer Markets. "Today, resolution is no longer an issue as even affordable models provide sufficient pixels. Now the new customers — the mass market consumers — are focused instead on their overall experience. We expect the next few years to be phenomenally healthy for digital photography, but while the question is no longer "When will they buy?" it now is very much "Whose brand will the buy?"

Due to Future Image's extensive first-hand access to top executives at the companies leading the charge in consumer digital imaging, as well its depth of analytical resources and primary research, this report is a key decision aiding tool for:
- Executives of companies making or selling digital cameras, digital camera components, or related products such as media and software.
- Investors participating in, or considering entering, the imaging sector
- Large corporate users of digital cameras.


The report is also available in a Reference Edition, which includes a searchable CD containing every news report on the topic of digital cameras and digital camera components published in either The Future Image Report or the Future Image Weekly Briefing, since June 2000. This invaluable reference enables researchers to track not only the eight companies profiled in the report, but every other company who has played as either a camera or component vendor in the past two years.

The Table of Contents and Figures, Executive Summary, and Definitions and Methodology sections are available at
http://www.futureimage.com/sfm.cgi?t=p/DCB
http://www.futureimage.com/sfm.cgi?t=p/DCBCD (Reference Edition)

Note to Editors: Excerpts of the report are available for publication.

Editorial Contacts:
Paul Worthington, Pworthington@futureimage.com; 209-742-4531
Alexis Gerard, Agerard@futureimage.com; 650-579-0493 x 41

Customer Service:
Heidy Bravo, Customer Service Manager
hbravo@futureimage.com, (650) 579 04 93 x42


About Future Image
Future Image's primary research and continuous information services focus on emerging technology-driven trends in imaging. Other recent reports include "Windows XP: Challenges & Opportunities for Imaging Companies;" "Image Servers — Early Adopter Case Studies;" and "Wireless Imaging — Infrastructure and Players." Founded in 1991, the company is headquartered in San Mateo, CA. Business leaders in over fifty countries worldwide subscribe to its Future Image Executive Information Service. www.futureimage.com. Future Image is the official information and research partner of the International Imaging Association (I3A), and the lead sponsor of the Visual Communication initiative (www.visualcommunication.info).






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