The top four makers of digital cameras in Taiwan have reduced quotes for five- and six-megapixel models from an average of US$80 for the first quarter of this year to US$70 this quarter in an attempt to win more OEM/ODM orders, according to industry sources.
The companies reducing quotes include Premier Image Technology, Altek, Asia Optical and Ability Enterprise. In order to offset the decrease in gross margins due to drops in OEM/ODM prices, these makers have made efforts to lower production costs mainly through increasing the self-supply of lens units, the sources indicated.
Premier Image expects to increase self-production of camera lens kits by 60% from 2005 to meet 60% of total demand in 2006 as well as increase output of more profitable high-end digital cameras. ABT Technology, Altek's joint venture maker of optical lenses and lens units in Suzhou (China), is constructing a factory with production to begin in the second quarter of 2007. Ability Enterprise has acquired a 40% stake in Pentax Baso (Guangzhou) Optomechanics located in southern China to secure a steady supply of lens units.
Tekom Technologies, which used to be a manufacturer of digital cameras in Taiwan, has shifted its business focus to providing digital content for digital cameras, according to company chairman Robert Tsai. Tekom will offer a five-megapixel digital camera model with built-in digital maps of China for sale soon through TV shopping channels in China, Tsai pointed out. This is the world's first digital camera model equipped with electronic maps, claimed Tsai.
Tekom and a large Chinese provider of electronic map databases have set up a joint venture to develop such digital cameras in China, with each having a 50% share, Tsai noted. Tekom will offer a second model with a six megapixel resolution this year and two more advanced models next year, with a sales goal of 300,000 units this year and 1.5 million units for 2007, Tsai pointed out.
Article translated by Adam Hwang and edited by Eric Mah
