Upgrading from Point and Shoot

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No matter how you slice it these SLRs are still pretty $$$$$..... Here's some info:

February 17, 2005  

Upgrading From Point and Shoot

Digital SLRs, a Favorite 

Of Pros, Drop Below $1,000;

Using Your Old Zoom Lens

By PUI-WING TAM 

Staff Reporter of THE WALL STREET JOURNAL

February 17, 2005; Page D1

A price war is hitting one of the most sought-after types of digital cameras.

Single-lens reflex cameras, or SLRs, long have been a favorite of professional photographers and dedicated amateurs. They can snap pictures faster, more accurately, and with far more detail than many other types of cameras. They are also compatible with a range of specialized lenses, which lets photographers shoot a great variety of pictures. But early generations of digital SLRs were priced at $1,500 to $15,000, far out of the reach of most consumers.

That is starting to change. Today, on the eve of a big photo-industry trade show in Orlando, Fla., Canon Inc. is unveiling a version of its Digital Rebel SLR for $999, and slashing the price of the previous model to $799 from $999. That follows the introduction of $999 SLRs late last year from both PentaxInc. and Olympus Corp. Nikon Inc. also now has its own sub-$1,000 SLR on the market, the D70, which lets users snap as many as 144 pictures without stopping.

The discounting on SLRs is beginning to ripple through the industry, sparking price cuts on other cameras as well, as makers of those models try to prevent their customers from migrating to SLRs. Later this week, Sony Corp. plans to debut a high-zoom point-and-shoot camera -- which looks much like an SLR -- for about $500, less than half the $1,000 price tag for some similar cameras. The company declined to elaborate on details about the new model. Last month Sony introduced a new Cybershot T33 digital point-and-shoot camera at $450, some $50 less than its predecessor model.

 

The focus on SLRs marks the return of a camera that was used widely in decades past to document family gatherings and vacations, only to be shelved by some when digital cameras were introduced.

One caveat with the price cuts: Sometimes they aren't quite what they appear to be. Nikon's D70 digital SLR, for example, is priced at $999 -- but just for the body of the camera. Consumers who want a lens to go with the camera body need to shell out several hundred dollars extra, bringing the bill to more than $1,299.

Other downsides: SLRs tend to be bulky and heavy and can't be slipped into a pants pocket.

Still, they offer several important advantages over traditional point-and-shoot cameras. They can produce more-detailed pictures, with a resolution of six to 12 megapixels, compared with three to four megapixels on the most popular point-and-shoot cameras. SLRs also snap pictures faster -- around 40 milliseconds versus several hundred milliseconds for point-and-shoots -- so users can catch fleeting images. And they allow photographers to use a variety of specialized lenses, from zooms to wide angles, that snap into the camera body.

Most importantly, SLRs often deliver more-accurate shots because they have internal mirrors that allow users to see the exact image they will capture through their viewfinder. Point-and-shoot cameras are made with a separate eyepiece that slightly distorts the composition of a photo.

Some analysts predict that the price cuts will fuel the rapid growth of digital SLRs. Of the 68 million digital cameras sold last year, only two million, or less than 3%, were SLRs. But that figure was more than double the 845,000 digital SLRs shipped world-wide in 2003.

Digital SLRs are shaping up to be an important source of growth for companies such as Canon and Nikon. Profit margins on point-and-shoot digital cameras are declining as competition stiffens, but digital SLRs offer fatter margins and a less-crowded market. What's more, digital SLRs usually lead to additional sales of accessories, since consumers who buy these digital cameras often want to purchase different lenses, at $100 and up.

 

Price wars on SLRs have been exceedingly rare, as buyers traditionally have been willing to pay a stiff premium for the added features and technology that goes into the cameras. But as consumers become more attuned to pricing variations in all types of products, SLRs, too, are becoming more affordable.

The average price of a digital SLR fell to $1,400 last year, from $1,972 in 2003, according to research firm IDC -- and the price is projected to drop to $1,200 this year. For high-end point-and-shoot cameras, the average price fell to $860 last year, from $1,000 in 2003; it is expected to fall to $752 this year, IDC says.

Jeff Hanks, who works in entertainment marketing in Los Angeles, purchased a $600 point-and-shoot digital camera a few years ago because he didn't want to invest in an SLR. But he didn't like the way the pictures of his four children turned out. So last year, he bought a $999 Canon Digital Rebel. "Now that's what I use 100%," says Mr. Hanks, 34 years old, citing the picture quality.

The new Canon digital SLR, the Digital Rebel XT, will cost $899 for the camera body or $999 with a lens. It has a resolution of eight megapixels, compared with six megapixels for the old model, and is two ounces lighter, at 17 ounces. The camera will be in stores next month.