Nokia has sights set on digital camera domination

Nokia is ramping up production of mobile phones containing cameras, and predicts it could soon become the world's biggest manufacturer of digital cameras.

The plans are part of the Finnish handset maker's strategy to focus more on "imaging" products. Nokia chief executive Jorma Ollila told analysts late last week that the company intends to make cameras a part of nearly every kind of Nokia phone by the second half of 2004. A company representative said that represents a "significant" expansion from the current line-up, which includes 12 Nokia phones that are capable of taking still photographs and recording 15-second videos.

A Nokia representative said: "We see it as inevitable that convergence of mobility and imaging will happen. Mobility boasts a number of benefits for imaging, as the device is with the user wherever he goes."

Camera phones were first introduced in Japan about three years ago, and have since become so popular that some market analysts believe they've started outselling digital cameras. Nokia believes it could become the biggest digital camera manufacturer globally in 2003. Ollila said: "We want to be driving this phenomenon very strongly."

Like most other handset makers, Nokia is designing phones to take advantage of a growing demand for services such as MMS, which allows emails to carry attachments such as documents, sound recordings or movie clips. MMS is expected to generate billions in extra revenue for carriers worldwide by 2005, analysts say.

Ben Charny writes for News.com