The Connected Camera Conundrum
Two years ago, I declared summer 2013 as the “Summer of the Smartphone Camera,” and for good reason. Marketing campaigns and product announcements from Apple, Samsung, and Nokia that year all extolled the quality and power of their respective device’s camera. Some, unofficially, even said this generation of smartphones would kill off the detachable lens camera market as optics, sensors, and image processing applications improved. Still, “The killer app for smartphone photogs,” I wrote “is the phone’s ability to easily upload images to their app or online service of choice…” This fact hasn’t changed. According to NPD’s Mobile Phone Track Service, 31 percent of new smartphone buyers say the quality of the camera was important to their decision to buy, making it a top 3 purchase motivator. Smartphones make great cameras, mostly because they can send photos to everyone you know in an instant. Connectivity is the key feature; the camera just needs to be good enough (though they are quickly getting better).
But, since 2013, the digital camera market has made significant strides towards increased connectivity. During this time, the number of connected cameras on the market has doubled, and Wi-Fi enabled digital cameras (inclusive of point and shoot and interchangeable lens) now account for 26 percent of total unit sales, up from 6 percent two years ago. Camcorders, too, have gotten in on the action as 60 percent of camcorder sales are now Wi-Fi enabled (mostly driven by GoPro). It seems connectivity is now one of imaging’s hottest trends.
Intense competition in the connected camera space is looming, however. Sony and Olympus have each released “lens cameras” in recent years that can wirelessly upload images and be operated remotely via smartphone. Earlier this month, DxO Labs released the DxO One, a DSLR caliber camera that attaches to the iPhone, allowing high-quality images to be taken and instantly sent to the cloud. Polaroid’s Socialmatic camera places an emphasis on sharing, easily uploading and printing photos straight from the camera. In addition to these camera devices, the smartphone camera accessory market is growing. Sales of clip-on lenses, tripods and selfie sticks reached nearly $18 million in the last 12 months. All of this points to the smartphone having a more official role as the go-to camera in the household.
Despite the growing trend in connected camera devices, traditional camera companies still have an opportunity to bring their expertise in imaging technology to the connected space. Sure, point and shoot, and interchangeable lens camera sales are declining, but consumers have never been more engaged with photography — some analysts expect 1 trillion photos will be taken worldwide in 2015. While many of those images will be taken with cameras built in to smartphones, tablets, drones, and smartwatches, there remains an opportunity to bring cameras with high end features deeper in to the connected age. If the smartphone’s killer app is connectivity, the connected camera’s advantage in this budding market can be quality.
This post originally appeared on The NPD Group Blog on September 10, 2015.
