Lower-priced Changeable Lens Cameras to be Snapped Up in 2010

Those predicting a bumper year for Changeable Lens were roundly disproved in 2009, with rising prices and lack of entry level models at key price points meaning more consumers opted for high-end compact. So 2009 ended with only a 3% increase in volumes to about 515,000 units, albeit accompanied by a big uplift in value thanks to rising sales £500 plus.

This, we expect to change for 2010 as price slippage will reduce the entry level for consumers in this sector and volumes will again start to rise more steeply. A rise of over 10% in units to around 575,000 units is certainly possible. Much will be determined by the success of the new "hybrid" or micro four-thirds segment, which is only just emerging in Q4 of 2009.

The falling volumes in the changeable lens segment seem to have benefitted top end compact, with sales above £200 and £300 increasing markedly. This is balanced off by a drop sub £200, with an overall decrease in volumes of about 8% in 2009. We don't expect a significant change to this trend for 2010, although we'll see the higher end fall back with the lowering of prices in changeable lens, but a pick up in the lower price points as consumer sentiment improves.

So overall the demand for cameras will remain strong, but from exactly what segment the consumer purchases will very much be determined by the overlap (or lack of it) for compact and changeable lens.