- The first quarter has traditionally been a weak season for the Taiwanese DSC (Digital Still Camera) industry due to the reduced working days during Chinese Lunar New Year and transitions to newer models. However, the shipment situation of Taiwan DSC industry exceeded expectations. The total shipment volume was nearly 4.4 million units, a 10.7% drop from the fourth quarter of 2003, with 43.3% growth year on year. Total shipment value was US$420 million, a 10.1% decline from the fourth quarter of 2003, but significant 71.9% growth year on year. The phenomenon was closely related to manufacturers' change of focus to the production of mid-range and high-end models. The ASP (Average Selling Price) of digital cameras was US$95.5, changing little from the fourth quarter of 2003.
As for the product mix of the Taiwanese DSC shipment in the first quarter of 2004, the share of 3MP (Megapixels) cameras increased to about 50%, 2MP dropped to less than 20%, and high-end 4MP models comprised nearly 30%. In contrast to the continuing growth of high-end cameras, the number of manufacturers of 1MP-and-under models keeps dwindling and their share in total shipment has dropped to under 3%.
Growing consumer expectations for digital camera performance has gradually eroded the market for 1MP-and-under models, thus lowering adoption rates of the CMOS (Complementary Metal-Oxide Semiconductor) image sensors that had previously dominated the entry-level segment. Rather, makers have been boosting the share of 2MP and 3MP cameras that use CMOS, closing the gap in adoption rates between CMOS and CCD (Charged Couple Device) in the 2MP and 3MP segment. With camera specifications marching steadily toward higher resolutions, samples of 4MP CMOS image sensors have already been introduced. However, ramp up times mass production will not be clear until the second half of 2004, which has contributed to the recent increase of CCD model share.
In the second quarter of 2004, the roll outs of new cameras in March are expected to boost Taiwanese DSC industry shipments to approximately 5.7 million units, 28.5% growth from the first quarter, and a 43.0% increase year on year. Total shipment value is expected to reach US$527 million, 25.4% growth from the first quarter, and a 62.8% gain year on year. ASP is expected to suffer a slight drop due to the increasing pressure on prices.