Second one-plus megapixel camera phone for U.S. announced at CES

From Gizmodo I learned that Audiovox Communications Corp. at the Consumer Electronics Show announced a 1.3 megapixel camera phone -- with a flash -- for CDMA networks. The 3.2-ounce handset features an internal and external TFT LCD, a speakerphone, and Java or BREW capabilities.

This is the second one-plus megapixel camera phone expected in the United States this year. In November 2003 I wrote about an article in SanDiego.com that reported Kyocera Wireless would offer a 1.2 megapixel camera phone with a flash in the U.S. this year.

Because the Audiovox camera phone, CDM-8910, is designed for CDMA networks, CDMA carriers Sprint PCS or Verizon Wireless could introduce the phone. If history repeats itself, Sprint -- the U.S. leader in camera phones -- will be the first to sell the Audiovox handset. Verizon recently announced its second camera phone; Sprint now offers seven camera phones, based on those listed on its Web site.

An important milestone

As I've written before, I believe the introduction of a one megapixel camera phone in the U.S. will be a "tipping point" because the resolution is high enough to enable a good printed image. No longer will some so-called analysts and journalists pooh-pooh the quality of camera phone photos.

This is important, not just for cellular users but also for building the various components of the camera phone "ecosystem." Some cellular operators have established partnerships with online photo printing sites, such as Cingular Wireless and Kodak, as I wrote in November 2003. Printing today's camera phone photos -- VGA quality (.3 megapixels) -- typically results in relatively poor images.

Many camera phone users might be quite disappointed in the results of the VGA prints, unless they order photos the size of postage stamps. But once you get to one megapixel and higher, you can otain a decent looking print. That's good for users as well as companies printing the photos.

One megapixel, two megapixels

In Japan, the first two megapixel camera phone was recently introduced. I wrote less than a week ago that it wasn't as much of a milestone as when the first one megapixel handset was introduced. However, the founder of Wireless Watch Japan, Daniel Scuka, posted a comment about the significance of the higher resolution handset and later provided more information in response to questions I e-mailed him.

I have written that I thought the U.S. would get the first one megapixel camera phone either late last year or early in 2004. With Kyocera and Audiovox announcing one-plus megapixel handsets for the U.S., I'd be shocked if we didn't see other manufacturers introducing these higher resolution handsets this year.

Comments

[Dean Bubley]

There's another interesting issue that is not often discussed about megapixel camera-phones: how this fits with operators' expensively-acquired MMS platforms. In Europe in particular, images are typically sent in this form, rather than as email or straight data uploads.

Most current MMS implementations (in both handset software & on operators' networks) restrict message size to 100kb. So, either a megapixel image will need hefty (and lossy) compression on the handset (which may need extra processing grunt to do this rapidly enough), or the image will need to be taken off the camera via another mechanism. Even if the MMS maximum file size is upgraded, it has huge backward-compatibility problems given the existing handset installed base.

I also agree with the arguments above about data tariffing, plus handset technology limitations. Overall, I cannot see how hi-res images will be sent over the cellular network cost-effectively.

Personally, I think that downloading 1MB+ image files are one of the key applications for forthcoming WLAN-equipped handsets (and also Bluetooth). It will also drive greater use of SD-cards or other removable storage in phones.

There may even be a business model for Kodak, Fuji et al to install WLAN "Digital Postcard Access Points" at the Grand Canyon, London Eye etc.....

Dean Bubley
Founder
Disruptive Analysis

[John Vermes]

I’ve never really understood the economics behind high pixel count photos over cell networks outside of Japan. If Americans and Europeans had to pay the freight that Japanese gladly pay for voice and data cell service, the whole cell business would be a non-starter. Consumer behavior is simply different over there for reasons beyond the scope of this post.

In our world, picture mail over the cell network requires all-you-can-eat data to be attractive to consumers. I have a t-mobile plan that gives me 1MB for $2.99/mo. That's fine for my limited WAP use, but one single megapixel photo eats that up all up. Of course, there's plenty of mobile data bandwidth around, mostly unused, and there's more coming, but that represents a lot of investment to be recovered by the cellular industry.

It seems hard to believe:

(a) that cell providers will recover their data investment any time soon even with their current high speed all-you-can-eat pricing. ($80.00/mo.?)
(b) that cell providers will lower all-you-can-eat data pricing just to accommodate picture mail.
(c) that consumers will pay even $5/mo. for a data add-on that is restricted to picture mail.
(d) that consumers will pay metered picture mail prices at even $.20 per picture once they get their first bill.
(e) etc.

Isn’t this yet another example of desperate hype and/or denial among mobile industry denizens? Perhaps they should just admit that they are best suited to be non-profit organizations and take it from there.