2MP Becoming Market Mainstream in 2008
In 2007, rapid growth in demand for video applications and strong sales performance in emerging markets ensured that VGA modules continued to account for a sizeable share of global mobile phone camera module shipments, at 46.1%. A high price-performance ratio ensured that 2MP modules overtook 1.3MP as the next largest market segment after VGA, with a 27.6% share of global shipments.
3MP modules are still expensive, and consumer demand for this type of camera module is low. With 5MP modules starting to appear on the market, the penetration rate of 3MP modules has risen much more slowly than that of 2MP models. In 2007, 3MP modules accounted for only 8.35 of global camera module shipments.
With the low cost and support for video applications, VGA modules will maintain a respectable market share of 34% in 2008. 2MP will establish itself as the new market mainstream; its share of total shipments will rise from 27.6% in 2007 to 34.9% in 2008. Falling prices will push 3MP modules' share up to 15.1%.
Nokia Contracts to Drive Taiwanese Camera Module Shipment Growth
Largely as a result of the lukewarm sales performance of leading customer Motorola, the Taiwanese camera module makers posted a shipment volume growth rate of only 12.6% in 2007, with total annual shipments of 168 million modules. By the second half of 2007, the Taiwanese manufacturers were working actively to diversify their customer portfolios, securing contracts from mobile phone vendors such as Samsung, O2, Apple, and LG.
In 2008, Taiwanese manufacturers have begun to win orders from Nokia for the first time. Taiwanese firms are now supplying camera modules to all five of the world's leading mobile phone vendors: Nokia, Samsung, Motorola, Sony Ericsson, and LG. At the same time, the types of camera module for which Taiwanese companies are providing ODM service now include not only entry-level VGA modules but also 2MP and even 3MP modules. It is anticipated that new contracts from Nokia, LG, and Apple will drive the Taiwanese mobile phone camera module's annual shipment volume up to 240 million units in 2008, representing an annual growth rate of 42.6%.
Low Adoption Rate of Auto Focus Capable Modules
While auto focus capability is already a standard feature for standalone digital cameras, the process of transferring this technology to camera phones has been a difficult one. The key issue is the difference in emphasis between the two products; while a digital camera is designed for taking photos, a camera phone is first and foremost a communications device.
When building a camera module into a mobile phone, the factors that the designers need to take into consideration include cost, size, and power consumption. Auto focus technology uses an actuator to rapidly adjust the lens. In a camera phone, adding an actuator inevitably means higher cost, increased size, and higher power consumption.
Several companies, including Sony Ericsson, Sharp, and Samsung, have begun using VCMs (Voice Coil Motor) in auto focus actuators, as the VCM is smaller and less expensive to produce than a piezoelectric motor or STM (Stepping Motor). Nokia is also planning to start using VCM motors in many of its new mobile phone models from 2008.
As an alternative to actuators, image sensor manufacturers such as OV have begun to introduce image sensor products with built-in auto focus capability, using software to achieve the auto focus effect. Although camera modules that use this type of auto focus technology are significantly less expensive to product, mechanical actuators still provide superior performance for long-range shots.
It is anticipated that the ongoing trend towards high-MP mobile phone camera modules will lead to increased demand for auto focus capability. If the problems of actuator price, size, and power consumption can be overcome, then shipments of auto focus capable camera modules will begin to grow rapidly.