Digital camera sales exceeding expectation First time buyers are still out there

21 December 2006 11:28 GMT / By Amber Maitland

Despite predictions that digital camera sales would slow this year and start to plateau, analysts at NPD say that sales in the US have exceeded expectation, and may indeed reach a record high.

Last year sales increased by only 22% through the end of November, during Black Friday sales after Thanksgiving; this year, that number was 24%.

NPD analyst Liz Cutting told CNN Money that there are still plenty of first-time buyers, while others are buying for the second or third time.

Prices on digital cameras are dropping, with a point and shoot retailing for around $180 this year, while last year the average was $218. This translates into less revenue growth, with sales up only 12% in dollars, down from 19% during the same period last year.

Although Canon owns the largest share in the digital camera market worldwide, in the US it runs neck to neck with Kodak.