Cheap point-and-shoot cameras may fade out of market - Times of India ~ Electronic Gadgets

KOLKATA: Cheap point-and-shoot cameras may fade out of the market soon. Two top camera makers, Canon and Fujifilm, said they would trim their sub-Rs 10,000 compact camera portfolio in the Indian market with industry sales of such entry-level models having almost halved in 2013, cannibalised by smartphones.

These units, which were until recently heavily advertised and endorsed by celebrities such as Anushka Sharma, Priyanka Chopra and Deepika Padukone, have failed to remain competitive with smartphones, which promise almost equal resolution along with instant sharing capability.

Sales of the devices, which used to contribute almost 80% of total digital camera sales by value in 2011 with the remainder accounted for by SLRs, dropped to 30% in 2013 and is expected to drop further to 15 -20 % in 2014, the manufacturers said.

While some Canon models would still be available for below Rs 10,000, the brand won't push the segment, said executive vice president Alok Bharadwaj. The compact camera market declined by more than 40% in 2013, necessitating a change in the focus on mid-to-high-end compact cameras and digital SLRs, which are growing at more than 30%.

"But we are still trying to add features in the entry-level models such as more optical zoom and low-light photography which smartphones can't match. This might also lead to some price hike but the market for plain-vanilla cameras is over. It's going to be a challenging year ahead," said Bharadwaj.

Fujifilm India will reduce the number of models in the entry segment and instead expand the high-end compact segment, said executive vice president Rohit Pa ndit.

"There has been a steep decline in the sales of compact cameras this year and hence we want to reduce our dependence by launching more feature-added models," he said.

However, Sony India sales head Sunil Nayyar said the company will continue with its sub-Rs 10,000 cameras for at least one more year before taking a final call.

"Despite the market scenario, since Sony controls almost half the compact camera market in India by sales, we would continue with the segment," he said.

Nikon said there would be no change in strategy as sales have grown in the category.

"As digital camera prices are becoming more affordable, consumers are lured to upgrade for superior quality," said Nikon India managing director Hiroshi Takashina.

Retailers said supplies of entry level compact cameras have dried up for all brands in the last two months. "Post-Diwali, there is no fresh import of compact cameras from any of the brands in the sub-Rs 10,000 segment ," said Pulkit Baid, director at Great Eastern Appliances, a leading electronics retail chain.

"All brands are clearing their old inventory which is getting channelised to upcountry locations and at best just one or two sub-Rs 10,000 models will remain," Baid added. Nikon's Takashina said camera makers are upgrading products and introducing features such as Wi-Fi connectivity, advanced shooting modes and inbuilt GPS.

"The industry is already seeing a growing demand for DSLRs and this shall only complement the mass segment of compact cameras," Takashina said. At the same time, camera makers such as Canon and Nikon are seeking to boost sales of DSLRs with models below Rs 30,000, combination lens offers and photography workshops.

via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGEwpAyEWFwioDWAi2MV6C4RLdPMA&url=http://timesofindia.indiatimes.com/tech/tech-news/hardware/Cheap-point-and-shoot-cameras-may-fade-out-of-market/articleshow/28240085.cms