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    Tuesday 31 December 2013

    Smartphones Are Killing Camera Companies Again

    As smartphone cameras get better and better, camera companies that compete on the lower end of the camera market are seeing their share erode away. In fact, so many people are giving up buying cameras because their smartphones are good enough that one Credit Suisse analyst told Reuters that he expects only Canon, Nikon, and Sony to survive

    Less than a decade ago, the digital camera market was split largely into two categories: point-and-shoots and DSLRs. While they varied widely in price (and there are smaller segments in each), DSLRs have always catered to pros, who need the best photo capabilities possible, and enthusiasts who want higher image quality and more control. Point-and-shoots, meanwhile, were largely bought by average consumers to take snapshots of their family, their dog, their vacations, whatever

    Until recently, people took pictures with their phones, but they'd tend to avoid it. People who frequent camera forums love to repeat "The best camera is the one with you" ad nauseum, but camera phones used to suck. Even people who couldn't care less about photos would buy a cheap point-and-shoot, because there was no other option. That market was a fairly natural evolution from the film days, and camera companies got along fine. (Aside from Kodak, that is

    But as smartphone cameras got better, suddenly there wasn't much of a difference between a point-and-shoot and the camera on your phone. Sure, you might get a better flash or zoom, but the calculus was simple for many people: If your phone camera is good enough, why spend more money on a point-and-shoot, which is just another device to carry around for marginal benefit

    Back in 2011, the iPhone 4 became the most popular camera on Flickr, while point-and-shoot cameras largely began to disappear. The iPhone 4's camera only has 5 megapixels, a paltry score for the spec camera companies best love to advertise. Yet its ease of use, quality, and ubiquity was enough to get a whole lot of people to ditch the idea of having a discrete camera altogether

    Today, the point-and-shoot is all but dead. In the first five months of 2013, point-and-shoot camera shipments dropped a whopping 43 percent; the four most popular cameras on Flickr are now iPhones. Many point-and-shoots may still have more capabilities than an iPhone. (That's definitely debatable though, especially considering an iPhone's connectivity.) But the type of person who buys a point-and-shoot—someone who just wants to take pictures, and isn't really concerned with photography—now has everything he or she wants built right into their phone

    Camera makers saw this coming, and about five years ago created a new mid-market camera segment to cater to people who wanted more capability than a phone could offer, but didn't want to spend the money to carry around a huge, clunky pro DSLR. The mirrorless segment, largely dominated by the Micro Four Thirds format, tends to feature cameras with plenty of manual controls and interchangeable lenses in smaller, better-looking packages than an entry-level DSLR


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