Online DSLR prices fall in Europe as camera sales grow 25 per cent globally

By Martin Vedris

BEDFORDSHIRE, UK: The online average selling price (ASP) of Digital SLR cameras declined 1.6 per cent (20 Euros) in the past 10 weeks, dropping to just over 1,250 Euros as of last week, according to UK-based research firm, Futuresource Consulting.

The week by week price tracking data from Futuresource refers to the EMEA region (Europe, Middle East and Africa) and encompasses price data from all on-line retailers in the region, including consumer electronics chains, supermarkets, department stores and AV dealers as well as internet-only shops and manufacturers’ own online stores. The pricing data used to determine the ASPs also includes promotional sales and discounts such as run out specials.

According to Futuresource, the 10 megapixel DSLR segment is resisting price erosion, whereas the lower megapixel segments are depreciating the most.

“Our price tracking system shows that some of the largest decreases in ASP appear in the six to seven megapixel segment,” says Adam Cox of Futuresource Consulting. “This group has seen a decline of nearly eight per cent, just short of 50 Euros, over the past 10 weeks.

“With most newly-launched DSLRs occupying the 10 megapixel segment, which is experiencing relatively slow price erosion, older models such as the 6.1 megapixel Nikon D40 are remaining price competitive. In fact, over the past 10 weeks this particular model’s ASP has decreased by more than seven per cent.”

According to Futuresource, the 10 megapixel segment accounts for the bulk of the DSLR market though, and the average selling price is dropping relatively slowly — less than three per cent in the past 10 weeks.

“Continued aggressive pricing of compacts and DSLRs is having an impact on the value of the camera business,” says James Wells, Futuresource Consulting, “although as margins continue to be squeezed, the industry will find it increasingly difficult to rely on price cutting to encourage consumers to upgrade.

“However, large like-for-like price declines did have a significant impact on the market in 2007, with overall digital camera shipments growing 25 per cent globally. In terms of 2008 growth, the DSLR market outlook looks particularly strong, with Futuresource projections showing growth of 19 per cent to 8.9 million units, equating to €5.4 billion worldwide, this despite the credit crunch.”

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