Automobile Precision Instruments Top News 5 Page  1   2   3   4   5    Three Key Points towards the Future Point 1 Can a Post-Digital Camera Product be Developed? Electric wave clocks. They receive the standard electric wave transmitted based on the very accurate atomic clock, and correct time automatically.    The market for the digital camera, which appeared in the late 1990s, grew quickly, and in 2001, its shipment value (54.5 billion yen) surpassed that of film cameras. In 2002, digital cameras also surpassed film cameras in the volume of shipments (24.55 million units). It became the biggest hit for the precision instruments industry. The next year, in 2003, the global volume of shipments expanded to 43.41 million units. However, as a result of Japanese manufacturers launching affordable models as well as luxury molds - such as single-lens reflex digital cameras - one after another, and excessive competition has already erupted. While the number shipped was still increasing in 2004, companies have made downward adjustments to their sales plans. It is certain that the market for digital cameras will eventually enter a matured phase, and so the next round, which will be dependent on how a post-digital camera product can be developed, has already begun. Point 2 Can Core Components be Developed and Manufactured In-house?    One of the biggest points that will determine the future course of the precision instruments industry is competition with the electronics industry. In the case of digital cameras, which became a record hit product, the key component is the charge-coupled device (CCD) which converts the light that comes in through a lens into digital signals. The only company among precision instruments manufacturers that has in-house technology for the CCD is Fuji Photo Film. Other companies are procuring the core component from Sony and other electronics manufacturers. However, unless core components can be manufactured in-house, a company is no different than an assembly and processing company. Furthermore, it places a limit to the amount of cost reductions that can be achieved. The same can be said for future product development. There will be a gap born between companies that have core components and those that do not. Whether a company will be able to develop core components ahead of other companies will become an important point in forecasting how that company will do in the future. Point 3 Can Precision Instrument Manufacturers Win Against Electronic Makers?    Cameras and timepieces originally developed with optics and mechanical engineering as a basis. However, as in the case of Canon, which got its lead over other companies by utilizing electronic control functions to develop autofocus cameras, it is essential that precision instruments be linked with electronic technology. When timepieces were heading towards digital, Casio made successful entry to the field based on liquid crystal display technology. Meanwhile, in the case of the current biggest hit - digital cameras - Sony, which has CCD technology, had top share in the market at one point despite being an electronics manufacturer. The boundary between precision instruments and electronics is now virtually gone. Although precision instrument makers still have an edge in optical techniques, it is no easy thing for them to be on an equal standing with electronics manufacturers that are large in scale as corporations. A major point will be whether precision instrument manufacturers can develop a unique technology that electronics manufacturers do not possess.