Abstract

Increased Share of Camera Phones with Built-in Video Modules

Of the new camera phone models released in 2007 by the world's five leading vendors, nearly 70% were models with 2M or higher resolution (2M accounted for 52.1%, 3M and 5M together for 17.5%). Except for a number of VGA products, 2M has already become the main stream specifications; Sony Ericsson did not even release any new 1.3M models.

Some brands are also actively promoting 2M and higher resolution camera phones in emerging markets like India where digital cameras are not yet widespread, in an attempt to win over consumers who might otherwise purchase value-line models.

Mobile phone vendors' 3M camera phones all offer auto focus functions, including the Nokia E90 and N93i, and Sony Ericsson K810, P1, and T650.

As camera phones image quality continues to improve, the use of video camera modules is becoming more common as well. Of the new models released by the world's top five vendors during the first five months of 2007, 30% had built-in video camera modules, and nearly half of Nokia new models come with built-in video cameras.

Increasing use of video camera modules will help the CCM market grow. Vendors choose different CCM suppliers for different imaging functions: for example the main lens on Nokia's N95 is supplied by Toshiba, while the video camera lens is supplied by ST. As Nokia demands that its camera modules comply with SMIA (Standard Mobile Imaging Architecture) standards, it is able to insure that components from different suppliers work properly together.

As VGA product prices fall and approach CIF product prices, some CIF module makers are being forced out of the market, and video camera modules are beginning to use VGA products.

CCM Makers Aggressively Expanding New Applications

The global CCM market is still developing, but growth is slowing and CCM makers' orders are concentrating on the world's top-five brands, leading to increased industry concentration. Companies are turning to products other than mobile phones to expand their market and diversify their customer base.

CCMs are used in mobile phones, computers, security systems, telematics, toys, and medical devices, with mobile phones accounting for 70% - 75% of the total CCM Shipment. The spread of broadband network, video conferencing, and instant messaging has spurred growth in webcam applications.

Webcam applications can be divided into desktop PC cameras and notebook cameras. The desktop PC camera market is already mature and is dominated by Logitech and certain Chinese companies. The notebook PC camera market continues to grow as notebook PC makers make increased use of built-in cameras.

90% of the world's notebook PCs are manufactured by Taiwanese companies, so Taiwanese CCM makers including Chicony, Acme System Technologies, and LiteOn have been eager to form partnerships with notebook PC makers. Large international companies like STMicro have also entered the market. Desktop PC cameras are easier to manufacture due to their size; however, notebook PC cameras must be manufactured to fit the notebook, raising issues not only of size and shape, but energy consumption, system integration, and heat dissipation. Image processing in mobile phone CCMs is usually done by the phone's internal Baseband IC or ISP. Image processing of notebook PC camera modules is done by the module's own backend IC. With a higher screen resolution, notebook PCs usually require higher image quality. For these reasons CCM makers have to expend more effort on notebook PC cameras.