Digital cameras set to outshoot 35mm versions
By Jefferson Graham
USA Today
Digital camera prices have been falling drastically for years, even as the cameras' quality improved.
But this spring, for the first time, even the entry-level models — around the $200 to $250 mark — rival film in image resolution and print quality.
It's yet another blow for 35mm film, whose sales have been dipping for years even as digital's sales have skyrocketed.
"Film's not going away, but it is on the decline," says Chris Chute of market research firm IDC. "It may eventually turn into a niche."
The Photo Marketing Association International projects that sales of digital cameras will surpass film models this year for the first time.
About 12.8 million digital units are expected to be sold this year, an increase of 36 percent over 2002, as film models drop 15 percent, to 12.1 million units.
Recent models from Canon, Sony and Fuji in the $200 range offer 3-megapixel sensors; a year ago, the same sum would have purchased basic 2-megapixel models. (Megapixels are a measurement of sharpness; 3 megapixels are considered minimum for enlargements bigger than 5-by-7 inches and for photo cropping.)
What the Canon and Sony models don't have at that price is an optical zoom, an important feature for most point-and-shoot shutterbugs. They do have "digital zoom," but that's more for marketing hype than for close-ups. It doesn't bring the subject nearer, but instead just crops the image in the camera and enlarges each pixel.
Higher-priced cameras add the higher-quality optical zoom common to 35mm point-and-shoot cameras. Models in the $250 to $400 range offer magnifications of 3X and more — referring to the ability to move from wide angle to telephoto (roughly 35mm to 105mm).
The low-end of the market "creates an opportunity for the dealer to get you in the door, and then say, 'But for $50 more, I can sell you a better camera, with a zoom,' " says IDC's Chute. "Most times, the consumer will upgrade."
But in June, which is also the heart of the wedding season and the traditional kickoff of summer vacations, "15 percent to 20 percent of digital camera purchases are as gifts," says Chute. "For a gift, buyers will accept a lower-end model, and these new ones should do very well."
Many entry-level customers are making the transition to their first digital camera, according to Sony's Jim Malcolm, often stepping up from those ubiquitous $10 35mm disposable film cameras.
He adds that, even with digital's skyrocketing popularity, "household penetration of digital cameras is around 20 percent, which means 80 percent are not yet using digital to capture their memories."
Later in the year, prices are expected to fall even further. Kodak has just announced two new models for August: the 2-megapixel CX6200 (no zoom) for $129, and a 3-megapixel model, the CX6330, with zoom, for $279.
But cost isn't the only consideration. Though prices start at $200, the average 3-megapixel camera currently sells for $300, according to InfoTrends Research Group.
Similar-featured models can cost up to $400, depending on the maker.
Besides zoom, higher-priced models offer such extras as rechargeable batteries, better builds and higher-capacity memory cards.
With lower prices, "you get what you pay for — a plastic body instead of a metal one, smaller sensors and slower processors and a less-powerful internal flash," says Dave Etchells, who runs www.imaging-resource.com.
