In this era of technology savvy consumers, smartphones are more than just a necessity. Sales of smartphones have shot up considerably and have more than doubled from 44 million units in 2013 to 100 million units in 2016.
According to a report by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the popularity of smartphones has adversely affected the market share of point and shoot cameras. The report has also predicted that the sale of smartphones will touch 165 million units by 2017.
Affordable smartphones in the range of Rs 4,000-10,000 account for 78 per cent of all smartphone sales and are equipped with similar features which one may get in sub-Rs 10,000 cameras. According to the ASSOCHAM report, most of the respondents felt that being unable to send pictures instantly was the biggest drawback of digital cameras. The report also highlights that around 93% of the customers now prefer smartphones as compared to digital cameras for both still photos and video capture.
As per the report, Tier-1 and Tier-2 cities contributed to almost 75% of the sales of mobiles and tablets. While the sale of personal computers, MP3 players sales have already started declining with the impact of smartphone and tablet adoption.
The study also said that one of the reasons for the subsequent rise in the demand of smart phones is due to increase in social networking site.
During 2010-11, 75% of total camera sales in India were contributed by point and shoot cameras and the rest by SLR cameras. But in 2015, this percentage dropped to just 30%, and it is expected to fall further to 10-15% by 2017.
The sale of smartphones is crushing the demand for point and shoot camera and this phenomenon is likely to get worse as the popularity and affordability of smartphones soars further.