Cameras in iPods: Game Over? by Wired Gadget Lab

This article in Wired Gadget Labs discusses the future of compact digital cameras with regard to Apple's possible move to equipping cheap cameras into every product available, even Nanos.

If Apple puts a camera in every iPod (the dying Classic and the tiny Shuffle excepted), will it kill the compact camera industry? The answer might actually be yes.

First, think about how Apple does business with the iPod. It is never the first, and often the products are feature-poor compared to the competition, but it is always dominant. IPod means MP3 player. Soon, phone will mean iPhone (at $99 a pop, who in their right mind will buy a different phone and an iPod together?).

With this kind of market saturation, Apple has the power to change whole product sectors. We already said that the iPhone’s new autofocus still and video camera is good enough for most people. By simply dropping a cheap new part into every iPod sold, Apple could wipe out the small digicam almost entirely. There will, between cellphones and iPods, almost no reason to buy a standalone camera unless you are an enthusiastic amateur, or a pro. If you think this is sensationalism, take a look at compact camera sales figures. They are dropping. The only growth sector is DSLRs which are seeing strong sales despite These Troubled Times®.