Taiwanese contract makers are forecast to churn out more than 40 percent of the world's digital cameras this year, thanks to cost-cutting measures by brandname firms, the Market Intelligence Center (資訊市場情報中心) announced yesterday.
Local makers will produce a total of 41.06 million units this year, an increase of 29 percent over last year. This will boost Taiwan's market share to 43 percent from last year's 36 percent, said the center, a government-funded research institute.
The second half of the year will see shipments totaling 24 million units, an increase of 23 percent from the same period last year, while the first half saw shipments of 17.06 million units, up 39 percent year-on-year, it said.
"Brandname firms will continue to give orders to local makers as they are trying to lower production costs as a result of price competition in mature markets," Chris Hung (
US-based Kodak Eastman Co was the first to launch cheaper digital cameras in mature markets such as the US to boost turnover rate, and Japan's Sony Corp and Canon Inc have followed suit, he said.
However, the bulk of the orders will only fall into the hands of first-tier contract makers as they have sophisticated technologies, and consolidation in the industry will give them an upper hand, Hung said.
Premier Image Technology Corp (普立爾), Taiwan's biggest digital camera producer, announced last month that it would merge with Hon Hai Precision Industry Co (
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