Prices of cameras are expected to decline by 10 per cent this year but the number of units sold is expected to rise.

Olympus (Malaysia) Sdn Bhd managing director Tan Tick Boon said from an average price of RM1,280 per camera, prices are expected to be reduced to RM1,170 this year.

Nonetheless, the sale of its digital SLR (single lens reflex) cameras are likely to grow to 2,000 units per month this year from 700 units in 2004.

Olympus is hoping to capture 30 per cent of the 24,000 units of digital SLR cameras that are expected to be sold this year.

Digital SLR cameras are differentiated from other digital cameras through their camera body and lens which are digital that goes towards the details of the image. Other digital cameras, meanwhile, do not have a lens that is digital and use interchangeable lens.

“The market keeps growing in terms of unit volumes, and digital imaging has become popular because you can see the pictures immediately,” said Tan.

The local camera market is expected to total 620,000 units valued at RM775 million this year, up 470,000 units valued at RM629 million in 2004.

In Malaysia, Olympus is projecting to sell 120,000 units of cameras valued at RM120 million for its financial year ending March 31 2006.

These represent a 20 per cent increase from 90,000 units valued at RM100 million that the company hopes to sell here in the current financial year ending March 31 2005.

“This will be a challenge for us as the technology is moving forward, but prices are sliding down.

“This has made the business tough, with so many players in the compact digital market. But we see an opportunity to introduce digital SLR cameras,” said Tan.

With the decline in analogue film since 1980s, Olympus decided that it will no longer have an involvement in interchangeable lens. Instead, it decided to have fixed lens.

Olympus introduced its E1, a pure level digital SLR, to professionals in December 2003. Last year, it introduced the E300, which is an 8-mega-pixel camera with a complete range of digital lens.

“At the moment, the market is dominated by the players who have introduced cameras with 6 mega pixel and non-digital lens. Olympus is introducing entry level digital SLR with 8 mega pixels, and 100 per cent pure digital lens,” he said.

Entry-level is for first-time digital SLR users.

Moreover, the E300 camera is equipped with supersonic wave filter technology which just needs 0.2 seconds to eliminate dust.

“In Malaysia, there is a big pool of consumers who are still using analogue film and are waiting for newer models that incorporates such technology,” said Tan.

Olympus, which currently holds a 15 per cent share in the local market in terms of value, said digital SLR alone contributes about 10 per cent of its total business.