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Worldwide DSC Shipments Plunges 35.5% YoY in 2013 as the Market is Eroded by Smartphones

By MIC
Published: Mar 21,2014

In 2013, the global DSC (Digital Still Camera) market continues to be squeezed by the expansion of smartphones. High-end smartphones' relentless pursuit of higher camera module specifications and superb photo quality to create product differentiation has posed significant threat to DSC market, particularly to mid-range and value-line models. For example, with its 41MP (megapixel) camera module, wide-angle lens, and 1/1.5-inch image sensor, Nokia Lumia 1020 is as good as a full-functional DSC. Japanese DSC branded vendors, such as Sony and Nikon, saw over 30% year-on-year decline in their shipment volume while some second-tier and third-tier vendors suffered over 50% slide in shipments. According to MIC (Market Intelligence and Consulting Institute), an ICT industry research institute based in Taipei, shipment volume of the worldwide DSC industry shrank to around 66.7 million units in 2013, down 35.5% year-on-year.

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Affected by the lackluster demand in the end-user market and branded vendors' conservative attitude towards launching new products, Taiwanese contract manufacturers, who mostly rely on Japanese DSC branded vendors' orders, saw a 5.8% year-on-year decline in shipment volume, to around 4.5 million units, in the fourth quarter of 2013. Overall, shipment volume of the Taiwanese DSC industry totaled around 23.1 million in 2013, down 45.7% against 2012.


The growing threat of smartphones has prompted many Taiwanese contract manufacturers to transform themselves and upgrade their manufacturing capability in order to secure orders for high-end models, like DSCs with Wi-Fi (Wireless Fidelity) connectivity. In the fourth quarter of 2013, thanks to the increased shipment volume share of high-end models, the Taiwanese DSC industry managed to have a slightly less severe decline in shipment value compared to that in shipment volume, reaching around US$301.6 million, down 45.1% year-on-year. Overall, the industry's shipment value plummeted 40.7% year-on-year to around US$1.5 billion in 2013.



Figure I: Taiwanese Digital Still Camera Shipment Volume, 1Q 2012 - 4Q 2014 (Source: MIC, March 2014)
Figure I: Taiwanese Digital Still Camera Shipment Volume, 1Q 2012 - 4Q 2014 (Source: MIC, March 2014)

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