Introduction
As per a recently published report by Nikkei and Japan’s Cabinet Office, the widespread use of smartphones has contributed to a considerable decrease in the need for digital cameras in Japan. This is evidenced by the household penetration of digital cameras falling below 50% for the first time in 19 years.
Japan’s Sharp Decline in Digital Camera Penetration
Every year, Japan’s Cabinet Office carries out a survey across approximately 5,000 households nationwide, chosen from households with more than two individuals. The recent survey, as reported by Nikkei, reveals that the household penetration has shrunk to just 48.6%, the lowest in the past 19 years.
Smartphones Outshine Digital Cameras
The rise in smartphone use can largely be credited for this decline in digital camera use. With household smartphone penetration at a striking 93.8%, it reflects that people prefer using their phone’s camera over a dedicated digital camera. Given the impressive quality of smartphone cameras that adequately meet the everyday photographic needs coupled with their mobility, makes the decline rather unsurprising.
Comparatively, in 2012, the peak of digital camera use in households was recorded at an overwhelming 77%.
Plummeting Digital Camera Sales
The Camera & Imaging Products Association (CIPA) based in Japan has also corroborated this downward trend with their latest report. It’s been noted that sale numbers of digital cameras have fallen massively. From selling an impressive 11.11 million units in 2008 to selling merely 910,000 units today, the industry has seen over a 92% drop in sales. These startling figures, however, are not exclusive to Japan. A similar downturn is also observable in global trends.
Thoughts on the Future Landscape
How this declining demand for digital cameras will shape the industry in the coming decades is rather intriguing. With diminishing customer demand, there inevitably comes a point where the needs of the customer fall short of commercial viability for the industry’s existing players.
If the trend continues, it might lead to an end of exaggerated PR gimmicks claiming delays in new product shipments due to exceeding customer demand expectations.
In conclusion, the 15-year drastic downfall in digital camera sales suggests a seismic shift in consumer behavior, that is undeniably caused by the advent of high-quality smartphone cameras. As this trend seems to be a global phenomenon, its impact on the future of digital camera companies will be compelling to observe.
