Smartphones Wiped 97% of Compact Digital Camera Market

Japanese camera manufacturers are bidding farewell to a once-major component of their operations, with Panasonic Holdings and Nikon suspending development of entry-level point-and-shoot cameras under their flagship brands. From a report: The companies will instead focus resources on pricier mirrorless models going forward, aiming to navigate a market upended by smartphones. Casual photographers flocked to compact digital cameras in the mid- to late 1990s, embracing their affordability and portability compared with single-lens reflex cameras. Global shipments reached 110 million units in 2008, according to the Camera & Imaging Products Association (CIPA). But as the iPhone and other camera-equipped smartphones won general consumers over, the camera industry fell off a cliff. Global shipments of compact digital cameras plunged 97% from the 2008 level to just 3.01 million units in 2021. Panasonic has been scaling back its model offerings in Lumix compact digital cameras, which debuted in 2001 and enjoyed high spots in domestic rankings at one point. The company has not released any new product for the price range below 50,000 yen ($370 at current rates) or so since 2019 and has no plans to develop a low-priced model going forward. "We've halted developing any new models that can be replaced by a smartphone," a spokesperson said. Panasonic will continue production of current offerings. But its focus going forward will be on developing high-end mirrorless cameras for photography enthusiasts and professionals. Nikon has suspended development of new compact models in its Coolpix line. It now offers just two models with high-powered lenses but it is "closely monitoring market trends" to determine production volumes going forward, according to an official. Nikon has also withdrawn from development of SLR cameras to specialize in upmarket mirrorless single-lens models. These companies are following in rivals' footsteps. Fujifilm has discontinued production of its FinePix compact cameras and will develop only the X100V series and other pricier models.

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