The Swiss Army knife is the classic example of combining multiple functions into a single device. There are numerous examples of other combination products: all-in-one printer/fax/scanner systems, cordless phone/answering machines, and clock radios to name a few.

However, some combinations didn't make the cut: videophones, WebTV, all-in-one PCs, and combination washer/dryers. Others, such as TV/VCRs succeeded in carving out a niche for themselves.

So what about camera phones?

A few years ago the answer would have been just that: "What about them?" Today, they are the hottest thing in the consumer mobile phone market. Just ask any handset vendor who may have ignored the device a year ago, and you'll find that they have become believers. You can see the results of one study in Figure A.

FIGURE A


According to IDC, use of camera phones among consumers is likely to triple in 2004 Roll over picture for a larger image.

IDC recently conducted a survey through its Mobile Advisory Council, an international group of consumers, mobile professionals, and corporate buyers who provide their opinions about mobile phones, PDAs, laptops and other devices. The focus of this survey was to study personal use of mobile technology and profile what people used in their homes.

While council members are technologically savvy and not representative of the general population as a whole, they are representative of early adopters and current mobile device customers. Therefore, it was not surprising to see that back in August 2003, before the holiday buying season; nearly 8% of the 2,074 respondents were already using a camera phone, and now over 77% are using them.

Camera phones were originally pitched to the young and hip, but lately the marketing messages have expanded up the age bracket. Camera phone usage will likely evenly split between Baby Boomers and GenX'ers if the handset vendors are to have their way. Several of the major handset vendors are speculating that by the end of 2005, camera phones will represent 90% of their product portfolio, as component costs fall quickly and imaging quality improves. This could potentially drive camera phone penetration through the roof, and drive adoption among older adults and at lower income levels.