As the DSC (Digital Still Camera) market is increasingly eroded by camera phones, Kyocera is now planning to scale back its digital camera production and funnel more resources to producing camera modules for mobile phones.

 

Refraining from disclosing a timetable for the strategic move, Kyocera said it would cease producing DSC under the Kyocera brand due to lackluster market performance. Production of Contax models, as well as OEM (Original Equipment Manufacturing) business, will continue.

 

As part of the restructuring effort, Kyocera will retool DSC production lines at manufacturing sites in Nagano Prefecture and China to produce camera modules for handsets. Sales networks in the US and Europe for the company's DSC business will also undergo reorganization. 

 

Currently, DSC and camera module businesses each accounts for half of Kyocera's optical division. As the plan to trim DSC output gets under way, Kyocrea expects to increase share of camera module business to over 90% in three years' time.