![]() ![]() Also, Cisco’s discontinuation of its flip phone in April 2011 can also be directly traced to the success of the video feature on modern Smartphones. In Nikon’s annual report presentation materials released the company estimated that the compact digital camera market declined by 30% in unit sales worldwide in FY 2013. And digital video cameras are also feeling the sting of the smartphone, as web based video sharing services such as Vine, continue to entice the younger generation to employ smartphones for visual communication. The aggressive price cutting, ubiquitous marketing campaigns and the expansion of distribution channels by the top three manufacturers of cameras, Sony, Nikon and Canon, is having little impact on the encroachment of built-in smartphone cameras on the existing camera markets. No end market has felt the crushing blow of smartphones on their unit production as have compact digital still cameras and handheld video cameras. ![]() The following chart illustrates the unit sales trend at Nintendo as an example of the impact smartphones are having on portable gaming.įigure 1.2: Unit Sales of the Nintendo DS Portable Gaming Unit between FY 2009 and FY 2013 (In Millions of Units Sold Worldwide) The innovative developments in portable gaming have been muted for the past three years, with manufacturers largely dependent on software titles to generate interest in hardware, but due to the lackluster global economic environment, the masses have become more satisfied with iPhone® and Android® based gaming titles. Smartphone’s have been successfully and continually eroding new demand for portable gaming systems such as the Nintendo DS and the Sony PSP. But what was not apparent was how the smartphone would displace the component supply to other key platforms, especially those in the consumer audio and video imaging markets. ![]() In 2009 the general consensus was that demand for capacitors, resistors, inductors and other mass-produced passive electronic components would increase dramatically to support higher part counts in smartphones compared to traditional wireless handsets. Seven Supply Chains that have been Irrevocably Displaced by the Smartphone ![]()
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