- As the Taiwanese digital camera industry moves into the traditionally slow season in the second quarter, Taiwanese makers are also just beginning small-volume rollouts of new models as they transition from previous contracts. The second quarter of 2003 will thus see a slowdown compared to the first quarter, with shipment volume reaching approximately 2.1 million units. Due to fast price drops in mainstream three to four megapixel cameras, and a plentitude of components for value-line cameras of two or less megapixels, second quarter shipment value is expected to fall by 23.5% from the first quarter.

Though SARS is hitting Asia full on, Taiwanese digital still camera makers' main markets are in Europe and the US, and Chinese share of Taiwanese digital still camera market is very low, all of which points to few market demand troubles. On the supply side, China has become a critical production site for the digital still camera industry, and leading manufacturers are greatly increasing production capacity in China, thereby accounting for over half of worldwide market share. However, because of effective control measures at factories to guard against the threat of full-scale close downs, shipment volume is not likely to be influenced in the short term. 

Approximately 60% of Taiwanese digital still camera production is shipped to US customers. Since the beginning of 2003, ODM/OEM contracts have also come in for Asia's main markets including Korea and Japan, as well as from large distributors in Europe. Next to Japan, Korea has particularly become a major source of contracts. Second quarter shipments to Korea are expected to grow by 80% compared to the first quarter.