Digital Camera News
Kodak Loses Number 1 Spot in US Market
May 11, 2006 – Kodak lost some U.S. market share in the first quarter, giving up its No. 1 spot to Canon. According to research firm IDC, Kodak had held the No. 1 spot for five consecutive quarters in the U.S. digital camera market. Now it has dropped to third behind Canon and Sony even with its recent announcements of an innovative dual lens camera and another WiFi-enabled model. According to IDC, Canon grabbed 19.3 percent of the market share while Sony brought in 17.1 percent. Kodak had a huge drop from 19.7 percent during the fourth quarter to 14.5 percent during the first quarter. These findings may not be very significant though, said the study; the fourth quarter holiday season peak in digital camera sales gives a better reading on which manufacturer truly has the top spot.
The research firm predicts that sales will pick up in the second quarter when consumers purchase gifts for Mother’s and Father’s Day and the summer bridal season heats up. Consumers heading out on vacation and to reunions are also expected to pick up digital cameras.
So all is not lost for Kodak, who reported a net loss of $298 million in the first quarter. The company is restructuring to accommodate the growing digital industry; the transformation is expected to be complete next year.
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