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Technology Stocks : WDC/Sandisk Corporation
WDC 163.33+3.5%Nov 28 9:30 AM EST
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To: orkrious who wrote (21187)11/15/2001 8:50:19 AM
From: Art Bechhoefer  Read Replies (3) of 60323
 
The sub-$100 market is at this time the LEAST important one for digital cameras. The reason is that this low end part of the market competes with conventional single use and point-and-shoot cameras that tend to be used only on special occasions. The "meat and potatoes" part of this market is the group of cameras with minimum 2.1 mp resolution, costs for which range from the low $200's on up. These cameras are used regularly, not just on certain occasions, and their use includes everything from real estate to insurance claims to vacations and important events such as weddings. The growth in this segment can be evaluated partly in terms of the DROP in conventional film sales and processing.

As has also been reported recently on this thread, digital cameras are among the most highly desired gifts for men and women this year. I have no worries whatsoever about the continued growth among the more serious camera users. Last year, Eli Harari predicted that by 2003 there would be virtually no conventional camera sales, except for single use cameras. That prediction is well on the way to becoming fact. What we need to worry about, however, is not digital cameras but other non-consumer driven applications, such as health information cards. This is the toughest nut to crack.

Art
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