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In a recent post about global camera sales in 2007, DSLR cameras were mentioned as a special and very important category. If you have noticed, the DSLRs sold in 2007 were about 7.5 million, roughly 6% of overall camera sales which exceeded 120 million.

So since the volume of DSLR cameras is so low overall, why is it so important? And why do all camera manufacturers try to get in this segment? Do not forget that recently Sony went as far as buying the Minolta camera division, mainly for the DSLR system that the later had already developed and sold in the market. So here is some main reasons I come up with:

1. DSLR cameras have large sensors, use high quality lens and in general are high precision masterpieces that offer the best in camera performance and engineering. Therefore excelling in DSLR design and manufacture is important.
2. As a consequence of #1, DSLR design and manufacture attracts the best engineers, designers and technicians available in the job market. Having a great workforce is super important for the future of any company.
3. DSLR cameras are the cameras used by professionals in high profile work, from studio to battleground journalism. These guys know a lot about cameras and can provide invaluable feedback about what to improve or what features to add. Furthermore, professional use is a great promotional tool for any brand.
4. The sale of a single DSLR body means at least the additional sale of kit lens, but in most cases different lens for wide angle work, sports, etc. Add prime lenses, fisheye lenses and accessories, and from one body make a rough calculation of how much money a DSLR body can bring in. Now compare that to the equivalent business from the sale of a compact camera…
5. DSLR profit margins are much much higher than those of compact cameras. If the body does not earn much net profit, it is certain that the lens does. Bear in mind that good glass does not lose its value, even if it is years old.
6. The fact that a dedicated DSLR user buys so much stuff apart from the body, means that he is “locked” in the system. In other words, choosing to change brands is financial suicide since there is no compatibility between brands and everything must be sold and bought again. This is partly why Canon and Nikon have so many stable customers. It is also why it is so difficult and slow for smaller DSLR players to encroach in the market share of the two “big ones”.
7. Seeing all the competition compacts have from mobile telephones and camcorders, it is not certain at all that volumes will continue to grow or whether they will continue to exist in their current form. On the other hand, DSLRs are a safe haven, a segment that is bound to morph in the future, but not at so rapid rates.

The above do not of course mean that we should immediately rush out and buy a DSLR. Every market segment has its value and uses. But these reasons are enough to justify special manufacturer attention and effort.

As for the threat of mobile phone and camcorder camera functionality for cameras in general, ElectronRun will return in the future with a dedicated post.

Link: ElectronRun - Nikon DSLR share almost equal to Canon’s, Canon still world #1 overall