Digital Home Thoughts: Ars Technica: "Will Camera Phones Upstage Digital Cameras?"

"Although sales of camera phones outstripped those of digital cameras last year, few of those were to consumers opting for a camera phone in lieu of a digital camera. And as high-resolution cameras become less expensive, consumers are starting to look harder at other features like storage type and capacity, zoom capability, and lens quality rather than raw image resolution. Even as phone manufacturers offer three megapixel phones, prices are dropping on five megapixel cameras, with even higher-resolution cameras poised to move into the mainstrearm. The question is, do people really want or need three megapixel camera phones, or is this a case of cell phone makers hoping to create a new market?"

We have discussed this topic before and somehow I don't think this will be the last time it comes up. This Ars article quotes a J.P. Morgan analyst as saying, "The emergence of the 3.2-megapixel phone will have a direct negative impact on the digital camera market from three megapixels on down. Demand for the three-megapixel category should naturally begin to shift from digital cameras to camera-equipped phones." I guess they are saying that as medium to high end digital cameras still have their place but low end cameras will be replaced by camera phones.