As sales of digital still camera (DSC) priced below NT$6,000 (US$203), continued to rise rapidly in 2011 in Taiwan, first-tier vendors Sony and Canon have been aggressive launching DSC models with prices of only NT$3,990 to compete in the market. Since the two players now each has about 40% of Taiwan's entry-level DSC market, it has seriously affected second-tier players with the issue expected to get worse in 2012, according to sources from DSC players.

Kodak's announcement of dissolving its capture device business as well as Casio and Pentax shipment declines are all strong indications that the second-tier players have been suppressed by the first-tier players, the sources noted.

In Taiwan, Canon and Sony's NT$3,990 DSC models each average about 10,000 shipments each month and together account for 25% of Taiwan's total monthly consumer DSC shipments of 70,000-80,000 units.

Smartphones and DSLR cameras are also affecting sales of consumers DSCs with the share of consumer DSC in Taiwan's overall digital camera shipments dropping from 83% in 2009 to only 58% in 2011, the sources noted.