This IDC study shows the results of IDC's teardown analysis of the LCD-enabled model and sheds some light on the economic model around this product category and the implications for the DSC semiconductor market. The bill-of-materials analysis of the single-use digital camera reveals low-cost design economics supported by standard controls and bare-minimum components for a digital feel. Targeting single-use film-based camera users, the dynamics of the hardware-lease and service-oriented model for this camera could become very interesting with individual component pricing and design trends in the near future.

"As the significant share of revenue comes from developing prints and the camera is used as an intermediary, chipmakers developing low-cost, low-power, and higher-resolution solutions may play a key role on the hardware side, driving lower costs and better-resolution products. Also, as prices for ASICs, LCD modules, and image sensors inevitably come down, the profitability of single-use digital cameras will increase." ? Ravi Kumar, senior analyst, Semiconductors