Digital camera boom cresting?

Is the digital camera market about to crest?

The PMAI says 52% of households will own a digital camera by the end of the year. Many consumers are already on their second digital camera purchase, suggesting the market is maturing earlier than expected, says Chris Chute, an analyst with market research firm IDC.

As a result, manufacturers are adding features and dropping prices. 'The competition will be fierce,' Chute says.

That's great news for consumers.

Photofinishers, from small one-hour photo labs to the local Wal-Mart (WMT) and CVS drugstore (CVS), are getting more aggressive in pushing digital printing. The average cost of a lab-produced 4-by-6 print in 2004 was 30 cents, down from 61 cents in 2000, says the PMAI.

52% penetration of the consumer market is just astounding. It appears that the consumer digital imaging market is rapidly reforming to strongly resemble the film-based consumer market.