Camera Phone Demand Soon to Peak According to In-Stat Survey; Low Picture Resolution and Other Factors Fail to Meet Users Expectations.

SCOTTSDALE, Ariz. -- Phones with the ability to take images, both still and video, have captured about 40% of the wireless phone market, reports In-Stat (http://www.in-stat.com). Despite the products' popularity, many camera phone users want higher resolution, the ability to use storage media, and many of the state-of-the-art features found in modern digital cameras, the high-tech market research firm says.

"These desires, plus the fact that many users already have a high-resolution digital camera, lead In-Stat to forecast that the North American market for camera and camcorder phones will peak in 2007," said Bill Hughes, In-Stat analyst.

In a companion report, In-Stat also found that dissatisfaction with picture quality is only one factor that is severely limiting sending or printing camera phone images.

A recent report by In-Stat found the following:

--The vast majority of users in the survey also use a high-resolution digital camera in addition to their camera phones. Only 3% of the respondents use their phone as their only digital camera.

--Most survey respondents indicated that they take fewer than 10 pictures with their camera phone each month.

--Fewer than 2% of respondents say they will consider a camera phone with less than 1 megapixel, while more than 50% say they would only consider a handset with more than 2 megapixels of resolution.

The report, "Multi-Megapixel Camera and Camcorder Phones--The End of the Beginning" (#IN0502113WH), covers the market for wireless camera and camcorder phones. It contains forecasts for camera and camcorder phone shipments and revenues in North America through 2010. It also includes results of an In-Stat consumer survey of wireless phone users on their use of and preferences regarding wireless camera and camcorder phones.

For more information on this report, please visit: http://www.instat.com/catalog/Wcatalogue.asp?id=66 or contact Tina Sheltra at 480-609-4531 or [e-mail]. The report price is $2,995.

A companion report, "Mobile Imaging Services: Focusing on the User Experience" (#IN0502053MCD), finds that people buy camera phones with high hopes for sharing and printing pictures but are thwarted by a number of factors. The report also identifies key players in the mobile imaging ecosystem and forecasts mobile imaging revenues through 2010.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, market analysis and forecasts of advanced communications services, infrastructure, end user devices and semiconductors. Our insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.