Total shipment value exceeded US$500 million, rising 18.5% from the first quarter, and more than 50% year-on-year. Some Taiwanese suppliers are lowering prices on older models in response to inventory pressures and a slow pace of liquidation. Although makers have rolled out new models that typically command higher prices, met with limp demand, even newer models have succumbed to price erosion. The result is a second quarter ASP (Average Selling Price) of US$94.6.

Shipments of 3MP (Megapixel) models have broken the forty percent mark, while 4MP and 5MP models collectively amount to nearly forty percent of total shipments as well. Another important development is the rise in popularity of camera phones. In markets such as Japan and Korea, where advanced mobile phones are adopted at a breakneck speed, 3MP camera phones are already rising in popularity. In other regional markets, 1MP camera phones have become the major focal point of consumer demand for the second quarter.

The increased demand for camera phones has exacerbated the squeeze on lower resolution DSC models. Consequently, DSC mainstream specifications have progressively risen upward toward 4MP and 5MP. Since models of these specifications that adopt CMOS (Complementary Metal-Oxide Semiconductor) image sensors have not yet entered mass production, CCD (Charged Couple Device) models remain the driving force of volume, and in the second quarter, accounted for 70% of Taiwanese shipments.

The proliferation of camera phones has cast a shadow on the prospects of the DSC industry. However, with the third quarter busy season approaching, and with many Taiwanese suppliers poised ship previously awarded orders, Taiwanese DSC shipment volume is expected to grow 21.8% sequentially and 29.8% year-on-year to reach 6.4 million units. Total shipment value is likely to soar to US$586 million, with 17% growth from the second quarter and 33.5% year-on-year.