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PC Video Camera Sales Explode In November.

PC Video Camera unit sales increased more than 250 percent in November 1999 versus November 1998, making it one of the top three fastest growing categories, according to a November 1999 PC Data Retail Hardware Report released last week. Revenue was up over 96 percent during that same period. For the first 11 months of the year, unit sales were up 128 percent and dollars advanced 35 percent as the average price for a PC Video camera fell 41 percent, from $161 to $96. Intel led unit sales for the third month in a row, as it continues to attempt to wrest control of the category from long-time market leader Logitech. Year-to-date however, Logitech remains the market share leader.

"PC Video Camera sales are being propelled by consumers growing interest in simple, low cost video solutions for their computers," says Stephen Baker, director of Hardware Analysis for PC Data. "Manufacturers in this category are satisfying this demand by providing easy to use connections, as nearly 96 percent of all cameras sold in November used USB connectivity and low price, as average prices before rebates fell to only $71, down from $130 in 1998."

In November, Intel was the market leader with a 37.2 percent unit share, despite an $81 average price, which was well above the overall average. Xirlink, the manufacturer of IBM branded PC cameras, captured second place with a unit share of 16.7 percent. The combination of the strong IBM brand name, and comparatively low prices, ($50 per camera), fueled Xirlink's performance. Logitech fell to third place, with 16.2 percent unit market share and an average price of $70. Ezonics followed in fourth place with 13.6 percent unit market share and an average price of $48, the lowest of the top five OEMs.

Since its entry into the category last winter, Ezonics has quickly gained market share on the basis of its aggressively low pricing. Kensington, which only entered the market in October, leapt to fifth place in November, with 5.3 percent unit share and an average price of $59. Kensington has been able to leverage the strong distribution channels of computer accessories products, as well as its product design ability, to make an immediate impact in the PC Video camera market. Price remains a major selling feature as the four top products in November all sold for less than the category average of $72.

The best selling PC Video Camera in November was Intel's PC Camera Pack at an average price of $65. The Xirlink IBM camera was second with a price of $49. Ezonics EZ302 was third with an average price of $44, the lowest of the top five products. Logitech's low priced entry, the QuickCam Express, which sold for an average of $49, was fourth, and the Intel PC Camera Pack Pro version was fifth, with an average price of $127. Combined the top five product represented 75 percent of all the sales for the month.

Through the first 11 months of the year, Logitech still remains the number one OEM with a unit share of 29.8 percent. Intel's strong showing over the last few months has propelled them to the number two spot, with unit share of 28.1 percent. Ezonics follows in third place with year-to-date share of 10.7 percent. In fourth place for the first 11 months of the year is Creative Labs with a market share of seven percent. Xirlink follows in fifth place at 6.8 percent of sales.
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Title Annotation:Industry Trend or Event
Comment:PC Video Camera Sales Explode In November.(Industry Trend or Event)
Publication:EDP Weekly's IT Monitor
Geographic Code:1USA
Date:Jan 10, 2000
Next Article:IDC Estimates Companies Increased Web Hosting Services Revenues By Almost $1 Billion In 1999.

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