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Point-&-Shoot DSC Sales Sustain Growth Levels

9/21/2009 03:48:00 PM Eastern

Sunnyvale,
Calif. - A trends study by Retrevo Pulse has found that demand and
prices for point-and-shoot digital cameras has held their ground through the
summer of 2009, despite the declines that met the category a year ago.

Demand was also not substantially influenced by price promotions,
the firm said, as prices have held steady throughout the year. Retrevo said consumers are showing a willingness
to pay for innovative features, including face technology, image stabilization,
higher resolution, HD video recording, larger displays and more compact
packaging.

The study, which regularly tracks Internet-based product sales
across a range of categories, said demand seems to be focused on the point-and-shoot
segment of the digital camera market, adding that sales for digital-SLRs and
many other CE categories are running pretty much flat or down from last year,
and are not enjoying the same growth that the point-and-shoot segment has seen.

Point-and-shoot models are also holding up against competition
from smartphones and/or camera phones that incorporate high-megapixel cameras,
Retrevo said.

Manish Rathi, Retrevo co-founder and marketing VP, said last
year's demand for digital cameras may have been abnormally pronounced due the
collapsing economy, but demand is normally slow during the period between
summer and holiday buying season.

"However, despite a continuing weak economy this year, we see
unusually strong demand for digital cameras, particularly compact cameras," he
said.

The firm predicts the demand will persist through the holiday
buying season, which should mean "very strong holiday sales for compact,
point-and-shoot digital cameras."