May 22, 2024
With the Rise of Smartphones, the Use of Digital Cameras is Predicted to Decrease by 50%
The Cabinet Office conducts an annual survey of 5,000 households to gauge the ownership of durable consumer goods. The results from April 2023 were a stark reflection of the changing times, with only 48.6% of households reporting ownership of a digital camera. In contrast, smartphone penetration soared to 93.8% by the end of fiscal year 2023, a staggering increase from 54.7% a decade earlier.
According to the Camera & Imaging Products Association (CIPA), domestic digital camera shipments have experienced a steep decline, dropping from 11.11 million units in 2008 to a mere 910,000 units. This significant drop can be attributed mainly to the steep decline in shipments of lens-integrated digital cameras, commonly known as 'condensers,' which accounted for a staggering 90% of the total units in 2008.
The drop in digital camera sales reflects decreased competitiveness among domestic consumer electronics manufacturers. According to the Home Appliance Association of Japan, the production value of home appliances in Japan declined from 7.7 trillion yen in 2000 to 3.8 trillion yen over the last 22 years.
Japanese companies remain competitive in semiconductors, while Apple, Chinese, and Korean companies are rising in final products. In the late 2000s, there was a shift towards converged hardware, software, and networks, with increased demand for products enabling easy photo sharing and video editing.
One approach is to survive through high-value-added products, but it may not work in a large market. The domestic market is shrinking due to smartphone popularity and the lack of "next-generation" digital consumer electronics.
