Contents:

Executive Summary Introduction - Experience vs. Hope Disappointment: Using the Carrier Network Disappointment: Sending Pictures to PC Disappointment: Printing - Carrier and Handset Preferences - Current Handset Ownership Brand Choice Handset Replacement Schedule Spending on Current Handset - Spending on Next Handset - Purchasing Profiles Use of Other Mobile Data Services Carrier Strategies - Alltel Corporation - Cingular Wireless - Nextel Communications - Sprint PCS Wireless - T-Mobile USA - U.S. Cellular Corporation Verizon Wireless Vendor Profiles - Adobe Systems, Inc. - Eastman Kodak Company - Fuji Photo Film USA - Hewlett-Packard - Microsoft - Nokia - Sony Ericsson Conclusions Forecasts - Forecast Drivers Baseline Definitions - Optimistic Forecast - Expected Forecast - Pessimistic Forecast Appendix 1: Methodology Appendix 2: Consumer Mobility Survey Questions List of Tables Table 1. Timeframe for Handset Replacement Table 2. Spending on Current Handset Table 3. Expected Spending on Next Handset Table 4. Use of Other Non-Voice Services Table 5. ALLTEL Messaging and Imaging Pricing Table 6. Cingular Messaging and Imaging Pricing Table 7. Nextel Messaging and Imaging Pricing Table 8. Sprint PCS Messaging and Imaging Pricing Table 9. T-Mobile Messaging and Imaging Pricing Table 10. USCellular Messaging and Imaging Pricing Table 11. Verizon Wireless Messaging and Imaging Pricing Table 12. North America Imaging Users and Revenues—Optimistic Forecast, 2005–2010 Table 13. North America Imaging Users and Revenues—Expected Forecast, 2005–2010 Table 14. North America Imaging Users and Revenues—Pessimistic Forecast, 2005–2010 List of Figures Figure 1. Actual vs. Desired Use of Camera Phone Images Figure 2. Topology of the Mobile Imaging Ecosystem Figure 3. Actual vs. Desired Use of Camera Phone Images Figure 4. Carrier Preferences for Imaging Users (Camera and Camcorder Phone) Figure 5. Current and Desired Handset Features Figure 6. Handset Brand Preferences for Imaging Users Figure 7. Timeframe for Handset Replacement Figure 8. Spending on Current Handset Figure 9. Expected Spending on Next Handset (base: Plan to purchase new handset within two years) Figure 10. North America Picture Message Users: Forecast, 2005–2010 Figure 11. North America Imaging Revenues: Forecast, 2005–2010 Camcorder phone,MMS,ARPU,Consumer Mobility Survey,Camera phone

Summary:

The camera is considered by many users to be one of the most desirable features in a new wireless handset. Yet, anecdotal evidence suggests that, on a global basis, only a percentage of camera phones are used regularly to transmit, print, or store pictures on a web site or PC. - Less than a third of camera phone owners surveyed indicated that they share picture messages with friends. - Barely one in six (15%) send pictures to their personal computers over the carrier's network - Only one in 20 stores pictures on carrier-provided web sites More striking, though, is the difference between how prospective camera phone owners plan to use their phones compared with how current users actually do. This report is intended for any company involved with imaging: handset makers, mobile carriers, photofinishers, and any other segment that hopes to extend the current infrastructure for digital imaging to the mobile world.