-Due to a high level of consumer acceptance and the year-end shopping season, Taiwanese DSC (Digital Still Camera) industry shipment volume exceeded 4.9 million units in the fourth quarter of 2003. However, growth declined 1.5% from the record high third quarter of 2003. This slight decline was a result of a concentration of maker shipments in September to November, with lower shipment volume surfacing in December. Nevertheless, shipment volume maintained 78% year on year growth in the fourth quarter of 2003. Shipment value grew 6.8% sequentially to reach approximately US$469 million. Despite the continued downward trend of end-market prices, Taiwanese DSC makers' move towards mid-range and high-end models has supported growth in industry shipment value, which grew 86.9% year on year, while ASP (Average Selling Price) increased to US$95.5.
Taiwanese DSC makers have continued to ship higher-resolution models. In the fourth quarter three MP (Megapixel) cameras comprised 36.1% of shipment volume, surpassing two MP camera share of 35.6% and officially rendering three MP cameras the driving force behind Taiwanese DSC growth. Models between four and five MPs respectively increased to 13.5% and 6.6%. Shipments continue to fall for one MP cameras and models under one MP. As for image sensor adoption, with the ramp up of mass production for three MP CMOS (Complementary Metal-Oxide Semiconductor) models, the CMOS image sensor adoption ratio rebounded. In the fourth quarter of 2003, the share of models adopting CMOS increased to 46.2%, but still fell short of the 53.8% share seen with CCD (Charged Coupled Device).
In the first quarter of 2004, due to reduced working days in January resulting from the Chinese Lunar New Year and the weak retail season historically evident in January and February, shipment volume will decrease sequentially. Based on recent evaluations of contracts won by makers and maker shipment schedules, shipment volume is expected to reach approximately four million units in the first quarter of 2004, year on year growth of 31.6%. The shift toward higher resolution models will persist, and the share of models equipped with optical zoom lenses will likely increase. Despite the smooth ramp up of mass production on three MP CMOS models, in the short term image quality will prevent such models from effectively replacing CCD cameras. Combined with an increase in the number of makers producing CCD models, CCD model share is anticipated to be higher in first quarter of 2004. Given intense market competition and declining price, an increase in ASP remains to be seen due to many unforeseeable factors.