Abstract

Constrained by Transmission Rates and Applications, Resolution Increases Slow

Resolution increases have been a constant factor in the development of digital imaging products. For example, since 2000 digital camera resolution has increased by approximately 1MP per year. In 2009, mainstream resolution for digital cameras has already reached 10MP. Mobile phone camera modules have also evolved from VGA to 2MP, 3MP, 5MP; major vendors have already rolled out 8MP to 12MP products.

However, the mainstream resolution of notebook PC cameras is still VGA. In 2007, as notebook PC vendors wanted to stimulate sales, 1.3MP for the first time exceeded VGA products. In 2008, however, VGA again rose to the top due to cost and usability considerations. 2MP products' share of total shipment has yet to exceed 10%.

Transmission rate is the main reason for the fact that notebook PC cameras have been unable to develop towards higher resolutions. Transmission rates can be divided into two parts: the internal transmission within the PC, and the network bandwidth of the user. Currently, PCs use USB 2.0, with a speed of 480Mb per second. VGA features 30fps. However, when using 2M resolution, even if the image sensor can reach 7.5fps, when going through internal PC transmission only 2fps to 3fps can be reached. This is thus not beneficial to Internet video applications.

Furthermore, external network bandwidth is also a reason for the fact that resolutions have not been able to increase. The main usage of consumers for notebook PC cameras is Internet video, which are motion images. When the content of each image is too large, the video will slow down and become less smooth. This causes delays in video signals, and impacts the willingness to use this application. Therefore, even if 1.3MP or 2MP notebook PC camera products are used for Internet video, the system will automatically downgrade to VGA. Also, regular users rarely use notebook PC cameras to take pictures, making 1.3MP or 2MP impractical.

The fact that high-resolution notebook PC cameras lack killer applications besides Internet video is also a key factor in the inability to increase resolutions. Value-added applications of notebook PC cameras, such as business card recognition, document scanning, and close-up photos are not yet able to satisfy users. If 2MP and higher notebook PC cameras are to be expanded, a key point for consumers and notebook PC brands, besides internal transmission rates and external network bandwidth increases, will be whether cameras can provide killer applications.

Camera Ratio in Notebook PCs Already High; Some Manufacturers Exiting the Industry

In 2008 notebook PC vendors continued to increase the ratio of cameras in their products. Besides consumer models, the use of cameras was extended to enterprise models as well. Also, netbook PCs experienced large-scale shipment increases in the second half of the year. Netbook PCs emphasize Internet functions, and more than 90% of netbook PCs are equipped with cameras. Notebook PC cameras (including cameras used in mainstream notebook PCs and netbook PCs) reached a shipment volume of 74.14 million units in 2008, and 55.8% of all mainstream notebook PCs and netbook PCs were equipped with cameras.

In 2009, cameras have become standard features in notebook PCs, and vendors continue to increase the camera ratio in their notebook PC products. In 2009, the camera ratio in notebook PCs is expected to reach 74.3%, and notebook PC camera shipment volume is expected to surpass 100 million, growing 45.8% compared to 2008.

The high camera ratio in notebook PCs indicates that the notebook PC camera industry has become mature, with the industry starting to see manufacturers exit the sector. First- and second-tier manufacturers account for more than 90% of shipments due to their early development of this sector and their software support capabilities. Third-tier manufacturers have therefore little room to operate and survive.

In 2009 demand in the notebook PC market is unclear, and manufacturers, in order to maintain flexibility, will shorten the roll-out schedules of new products from six to nine months to four months. Notebook PC cameras will thus have to feature even more flexible support. Meanwhile, LED adoption in notebook PC is increasing significantly, making the thin design trend among notebook PCs more prominent, while also increasing the difficulty in designing notebook PC cameras. Furthermore, the low-price trend among notebook PCs has caused a decline in notebook PC camera ASP. Due to these factors, the notebook PC camera industry is expected to again go through a reshuffling period.

Appendix

Research Scope

This report examines developments in the notebook PC camera industry, including product trends and competition trends among manufacturers.

Definitions

Mainstream Notebook PC

Mainstream notebook PCs are notebook PCs equipped with screens sized 10.4" and larger.

Netbook PC

Netbook PCs are notebook PCs with screen sizes between 7" and 10.2".

Notebook PC Camera

The term "notebook PC camera" refers to cameras used in mainstream notebook PCs and netbook PCs.

List of Companies