Profits fading in digicam industry

The competition was already fierce among digicam vendors anyway, and then along came the cellcams. Reuters reports on the effects on dedicated digital camera profits.

There will certainly always be room at the top for SLRs such as the Canon EOS 20D and higher res compact digicams like the PowerShot S500. Nonetheless the pressure from camera phones is strong now and will only continue to drive digicam prices lower and lower, especially as more megapixel models like the Samsung p735 and Nokia 7610 hit major markets.

Dedicated camera vendors had to completely rethink their businesses a few years ago with the eclipsing of film by digital technologies. Now they’re forced to revamp again in the face of the cellcam onslaught. Tough, but not impossible: As the article notes, Kodak’s profits are up based upon a reworked approach and product line. Talk about reinvention!