Refocusing on Digital Cameras

Does anyone out there still use film in his camera? Photo film, like typewriter ribbon, television antennas, and leaded fuel, has been reconciled to the dusty storage room of history where all once-cutting-edge technology seems eventually to land. Some diehards still insist on clattering away on their old Remingtons or tooling around the countryside in their vintage Packards, but the rest of us have moved on.
In fact, the digital camera conquest of the consumer photography business has been near-total, as the numbers demonstrate. An April, 2008, report from Forrester Research (FORR) claims more than 6 out of 10 individuals in the U.S. owns a digital camera. There are several reasons behind this rise. First, digital cameras have become easier to use; second, thanks to broadband Internet penetration, more users are able to upload and share their photographs online; and lastly, digital cameras have become a lot cheaper.
Sales Level Off
That's good news for consumers, but it presents a problem for camera makers. Like the computer, another popular device whose success eats into its profitability, digital cameras are in an increasingly mature market, as it nears maximum penetration and its rate of growth slows. (Not to mention increasing competition from constantly improving cell-phone cameras.) The trick now is to enter new markets as well as develop new technologies that will keep existing users coming back.
According to Chris Chute of research firm IDC (IDC), we will "see a gradually maturing market where sales growth gradually levels off—at about 35 million units per year in the U.S., as opposed to 38 million in 2007." He also points out that in 2007, 131 million units were shipped worldwide. This represented a 24% growth rate, compared with 15% in 2006. However, this was a reversal of the trend that has seen the digital camera market experiencing a slowing rate of growth over the previous three years.
He attributes the unexpected jump in sales growth in 2007 to a higher churn rate than anticipated—it seems a consumer digital camera's life span is probably about two years, a lot like the mobile phone, and people replace them on a regular basis. He doesn't expect this to change much, "because at these prices the cameras won't be robust enough to last more than a couple of years anyway."
DSLR Growth
But one subsector of the business has picked up the slack from the now-ubiquitous digital compact camera and is providing the double benefit of stellar growth and fatter margins for the producers—digital single lens reflex cameras, or DSLRs.
Although DSLRs capture only 8% of the global market, according to IDC, their sales grew at a 41% clip last year, almost twice that of digital cameras as a whole.
This is being driven by second- or third-time buyers who are upgrading from point-and-shoot cameras to these more sophisticated models, what the industry calls "prosumer" DSLRs. With an average price of about $800, fatter margins, and a healthy accessory market, DSLRs have really been a boon to manufacturers, particularly Canon (CAJ) and Nikon (NINOF).
Margins are helped by the fact that Canon and Nikon do not need to develop new technology for consumer DSLRs—they just adapt technology originally developed for their professional DSLRs, so these $750 to $1,500 cameras represent a very lucrative business, even if the number of total units shipped is still relatively small.
Shifting Demographics
Originally, it seemed men were pretty much the only ones sporting these status symbols around their necks. But according to IDC's Chute, in the last year the demographics have started to shift toward women as manufacturers have put a lot of effort into producing smaller and lighter models, such as the Nikon D60.
As the compact digital market has matured, cameras have become more alike, boasting the same features that vendors have figured out users want. As Brian O'Rourke, an analyst at Phoenix-based high-tech market research firm In-Stat, points out: "As sales have grown, the photographic knowledge of the typical user drops. It's not the hobbyist area it was six years ago."
Narrowing Choices
So with summer arriving fast, if you're thinking of buying your first digital camera, replacing that old four-megapixel number with the balky flash, or even upgrading to a fancy DSLR, take a look at the accompanying slide show—there is something for everybody there.
We looked at and tested a wide range of cameras from entry-level compact to consumer DSLRs and picked the best, in terms of image quality, features, and usability at a range of price points.
So, whether you're looking for a rugged point-and-shoot to take on the Appalachian Trail (the Olympus Stylus 1030SW) or a DSLR that can capture your kids' sporting achievements at three frames per second (the Panasonic Lumix DMC-L10),

Apple’s iTunes Becomes the United States’ No. 2 Music Retailer

By Raymond Fitzmyer
According to market research firm NPD Group’s recent announcement, it seems that Apple’s iTunes became No. 2 music seller in the United States, just behind Wal-Mart Stores. The market research company based its recent report on measures of retailers’ volumes of sales.
NPD Group said on Tuesday that Apple’s popular online music store reached the second place thanks to the large amount of music it sold in 2007. NPD Group started tracking music sold in the United States during the middle of 2006 and in the fourth quarter of that year it was Best Buy, not Apple’s iTunes, on the second place behind Wal-Mart Stores. iTunes was neither on the third place, which was taken by Target Corp. Apple’s online music service came only on the fourth place.
But in 2007, things changed and Best Buy took the third place and Target Corp. the fourth, while iTunes became No. 2
NPD Group’s analyst Russ Crupnick said this change was “fairly understandable given the pressure that’s been on CDs and the almost 50-percent growth in digital downloading in the past year.”
But the market research company’s recent report brought us also other interesting data to think about: the company showed, for example, that in 2007, almost 10 percent of music acquired in the United States was bought through legal downloads. During the same year, the number of consumers that bought digital music through legal pay-to-download web sites increased by 5 million to 29 million.
NPD Group also announced that the amount of music people bought in the United States rose 6 percent during last 2007.
In morning trading Apple’s shares fell $2.55 (2.1 percent), while Wal-Mart Stores’ shares rose to $51.14.

Skype 101

Skype is the most popular technology for making long-distance telephone calls over the internet. The internet relies on telephone lines, so using a computer equipped with a microphone and speaker instead of a telephone handset is not particularly technical for users.
Or beneficial -- by itself, the only benefit to simple internet telephony is tolls. Skype is free -- but only once you've paid for a computer and broadband internet access. Sound quality is often worse than traditional telephony and it is not as convenient as picking up a phone and ringing overseas.
But there's much more to Skype than telephony, especially conference calls, video calls and the current nirvana -- conference video calls.
My wife and I have been using video Skype to stay in touch with family overseas for about two years. Using a webcam (web camera), it's great to see my parents in Canada and mother-in-law in England -- if only to judge how they are getting on as they get on.
And, of course, they get to see their grandchildren as they grow up. My father-in-law has read nursery rhymes and other children's stories to his grandchildren using Skype video calls from overseas, which is magical.
Skyping requires some technical ability at both ends. My parents -- either side of 80 and happy Apple Mac users -- prevailed on a friend's son to get Skype working for them. My father-in-law built a home computer back in the 1970s, so doesn't need any assistance.
There also has to be interest. My brothers and sister have shown no interest in Skyping, despite apparent ability, while my wife's family engages in regular conference calls between New Zealand, California, Canada and Britain.
There's little point in running through a Skype download and set-up in this article. The instructions and troubleshooting at www.skype.com are straightforward.
But there are things worth noting. First, the Skype website is jammed with ways to send the company money. Ignore these -- we've never paid Skype anything and don't think the extra services that cost money are worthwhile.
You'll also find Skype software packages for sale in stores and online. Buy these only if you insist on paying for what is free. You'll also see Skype-optimised webcams, headsets and microphones for sale. Don't pay premiums for these items.
You'll need: an up-to-date computer, which will have the grunt to handle sound and video. You also need a microphone, speaker and webcam for video calls. Most recently bought laptops have built-in webcams and microphones and speakers. Our laptop isn't recent, so we rely on an external webcam and headset with microphone and earphones. Desktop computers may have built-in equipment as well.
Once you've got Skype running, you may get friendly requests from strangers. Our Skype is registered in my wife's name and sometimes strangers, especially Indian men, want to chat with her. She declines.
Skype is not the only company offering video and telephony over the net. Yahoo, Microsoft and others also offer the services. For the time being, however, calls are proprietary. So, you make a Skype-to-Skype call, or Yahoo-to-Yahoo call. I don't know when you'll be allowed to make a Skype-to-Yahoo call.
Fortunately Skype comes in discrete chunks that make scaling up in sophistication pretty easy. First, master simple telephony, then move to video calls and then to video conferencing, which is not yet available from Skype, but will be down the track.

Kiwis flock to internet banking despite risks

Two out of three internet users now access online banking, despite New Zealand banks admitting the sites are exposed to frequent attacks.
Figures made public by Nielsen Online Consumer Finance Monitor show online banking has experienced "phenomenal growth" with the proportion of users doubling in three years.
Nielsen spokesman Donald Sheppard said online banking had become mainstream with frequently used sites receiving more than half a million unique browsers a month.
"Once they use the internet, people of all ages adopt online banking with enthusiasm," Sheppard said.
"For younger people with internet access, online banking is the norm."
Sheppard said 80 per cent of those under 40 used online banking and it was becoming more common practice for older people, with 62 per cent of those over 55 logging on in the past month.
In New Zealand, 84 per cent of people over 15 have access to the internet and 71 per cent use the internet at least once a month.
On their last visit to an online banking site, 90 per cent of customers checked their account balances and about half transferred money or made payments online.
"On the whole, customers are very happy with the online banking sites they use - around eight in 10 rate their experience as very good or excellent, with ASB recording an outstanding result (87 per cent very good or excellent)," Sheppard said.
ASB had the highest proportion of customers - 85 per cent - who used online banking in the last month, followed by Kiwibank with 81 per cent and Westpac with 77 per cent, Sheppard said.
The figures from Nielsen Online were a result of interviews of more than 15,000 people during 2007.
Last month it was reported that a new virus - that had attacked 400 banks world-wide - was able to bypass New Zealand banks' two-factor online authentication, generally a user name and a pass-word.
The threat resulted in big New Zealand banks reissuing safety advice to their customers, which included running up-to-date anti-virus protection programs and regularly changing their passwords.
National Bank, ANZ, ASB, Kiwibank and BNZ all offer reimbursement for online banking fraud on a case-by-case basis. Westpac guarantees cover for all online banking fraud losses.
The banks were criticised last week after the release of the report for taking out information about consumers' security concerns. ASB has since released research showing 46 per cent of bank customers are "highly concerned" about online banking security.
How to avoid getting stung:
Review your bank's terms and conditions and consider if the security is adequate.
If you are getting rid of a computer, remember that data can remain stored on the hard-drive after it has been deleted.
Always log out when ending a secure transaction -- especially at shared internet terminals such as internet cafes.
Never give out your user name or password.

China asks websites to self-censor porn, violence

China has called on domestic websites to sign a voluntary pact governing online video and audio content, saying they should exercise self-censorship to ensure a "healthy and orderly" cyberspace.
The move is part of government efforts to exert greater control over China's rapidly growing Internet sector, and to prevent content deemed harmful or subversive from getting into the public domain.
Eight "central" websites on Friday signed the pact requiring them to eradicate pornography and violence, which had "seriously polluted the online environment and affected the growth of young people", the national broadcast watchdog said.
"The signatories should actively disseminate healthy, beneficial audio-visual programs meeting socialist moral norms," reads the text of the pact drafted by the State Administration of Radio, Film and Television.
"Decadent, backward thoughts and culture must be boycotted by all," according to a copy of the pact posted on the administration's Web site (www.sarft.gov.cn). Content related to gambling and "horror" were also targeted.
Signatories so far included the sites of official news agency Xinhua, Communist Party mouthpiece the People's Daily and other state media organisations.
China has seen robust growth of its Internet population – 210 million by the end of 2007 – in the past decade, fostering a dynamic, diverse and sometimes vulgar cyberspace which often defies the more puritanical official culture.
The Ministry of Information Industry unveiled new rules on online video and audio content banning violent, pornographic and fake material late last year.
The rules stipulate that websites offering broadcast or streaming services should be run by state-invested bodies. Sites that have a clean record would be able to reapply for independent operating licenses.
The pact asked websites to use an online database (net.tv.cn) set up by the watchdog where there was a pool of recommended "excellent" audio-visual programs and a list of illegal content that must be avoided.
Websites were also obliged to delete improper content uploaded by ordinary Internet users and to protect intellectual property, according to the pact.

Pakistan orders Youtube blocked over cartoons

Pakistan has ordered local internet service providers to block access to the popular Youtube Web site because of cartoons of the Prophet Mohammad that have outraged many Muslims.
The cartoons, published in Danish newspapers in 2005 and again earlier this month, angered Muslims because of their depiction of the Prophet Mohammad.
"They asked us to ban it immediately. . . and the order says the ban will continue until further notice," said Wahaj-us-Siraj, convener of the Association of Pakistan Internet Service Providers.
Publication of the cartoons led to protests and rioting in many Muslim countries, including Pakistan, in which at least 50 people were killed and three Danish embassies attacked.
Several Danish newspapers reprinted one of the cartoons earlier this month after police in Copenhagen uncovered a plot by two Tunisians and a Dane of Moroccan origin to kill the cartoonist, sparking further protests around the world.
Attempts to access Youtube in Islamabad on Sunday were met with a generic error message saying the site was unavailable.
"Users are quite upset. They're screaming at ISPs which can't do anything," Siraj said.
"The government has valid reason for that, but they have to find a better way of doing it. If we continue blocking popular Web sites, people will stop using the internet."

Motorola acquires cable assets of Zhejiang Dahua Digital

MOT said Monday it has acquired the assets related to the digital cable set-top products of Zhejiang Dahua Digital Technology Co. Ltd. and Hangzhou Image Silicon.
The transaction will expand Motorola's digital set-top box offerings in China and improve Motorola's time to market in the region, the company said in a statement.
Terms of the transaction weren't disclosed.
The statement describes Zhejiang Dahua Digital as a company focusing on manufacturing, marketing, research and development and services for digital TV set-top boxes.
"130 million Chinese households currently subscribe to cable, and as customers make the transition from traditional analog solutions to digital cable, digital cable subscriptions in China are expected to grow from 10 million in 2006 to over 165 million by 2016," said Simon Leung, president of Motorola Asia Pacific.