Taiwan ODM/OEM digital camera makers to see more orders from Japan but shrinking net margins in 2008, says Asia Optical
Jan 17, 2008
The global demand for digital cameras in 2008 will grow by 10% from 2007 mainly due to fast growth in emerging markets such as Russia and India, but average selling prices (ASPs) will continue to fall, according to chairman Robert Lai of Asia Optical. Consequently, leading Japan-based vendors are expected to release more ODM/OEM orders to Taiwan-based makers, but net ODM/OEM margin rates will drop to as low as US$2-3 per camera, Lai pointed out.
As global retail prices of digital cameras slip by 20-30% annually on average, leading international vendors have to progressively shift their mainstream products to increasingly higher resolution levels to minimize the impact of price drops, Lai explained. In the US market, for example, the lowest retail price of entry-level (7-megapixel and 3x optical zoom) models stood at US$199 in 2007 but is expected to drop to US$99 in March 2008 when new models are launched, Lai indicated.
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