For more information, contact:

Kirsten Fischer, Senior Marketing Manager
Phone: 480-609-4534; Email: kirsten.fischer@reedbusiness.com

Camera Phone Market Continues to Boom - 200% Growth in Annual Shipments

SCOTTSDALE, Ariz., December 14, 2004 - The camera phone market is skyrocketing with worldwide annual shipments up more than 200% in 2004, according to In-Stat/MDR (http://www.instat.com). This rapid success is being fueled by manufacturers offering camera features in most new models, and improving image quality.

“The devices have gone mainstream in less than four years,” says In-Stat/MDR analyst Neil Strother. “Now, one needs to look hard to find a handset that doesn’t feature an embedded camera.”

Despite the popularity of the picture phones, the hoped-for economic boost from photo sharing, storage, and related applications has yet to take hold for many carriers. Carriers need to reduce the prices for these services to encourage more consumers to use them, Strother says.

In-Stat/MDR has also found that:

• Consumers have adopted camera phones rather quickly, with US penetration at about 14%, and growing.
  
• Photo quality, though improving, needs to move beyond the VGA level rather quickly in order to stimulate greater photo taking.
  
• Improved interoperability is necessary to allow photo sharing among US consumers who use different carriers.

Recent In-Stat research, Getting the Picture: What’s Behind the Camera Phone Boom (#IN0401703WH), includes information about US consumer opinions about camera phones and US early-adopter usage of camera phones, as well as a regional breakdown of camera phone shipments, OEM market shares and handset revenue projections.

For more information, contact:

Neil Strother, Senior Analyst
Phone: 425-827-7150
Email: nstrother@reedbusiness.com

Kirsten Fischer, Senior Marketing Manager
Phone: 480-609-4534
Email: kirsten.fischer@reedbusiness.com

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

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