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Impact of Mobile

the impact of mobile on the consumer digital photography industry, and that's obviously enormously important. It has enormously eroded the entry level compact market. You know, some manufacturers have just set out right with not making compact in that segment anymore because of because of the smartphone. So I'm just gonna open that up. What impact its mobile made on. Actually, let's talk to John. Yeah, it's it's had a huge impact. There's no denying that the positive is that people are taking more pictures than ever before. Yeah, way more pictures than ever before, but they're not doing it with a compact camera. They're doing it with their phones. They're doing it with with other cameras. So I think it's a matter of educating consumers where, yes, your mobile phone takes pictures. Andi could do a lot of things with those pictures. But when you get to see more advanced techniques like frame rates and our depth of field, so those things you can't have or do with the mobile phone, that's ...

where the opportunity lies and really educating the consumer on you know, this is what a DSLR for mere lists for and what it can offer three other opportunities are, you know, something like a water that's that's hard to do and a mobile phone or smartphone, right? Um, high in compacts, things like that, with a large sensor where you're getting better, dynamic range, better that field, all those things. So there's There's certainly place for both types of imaging devices. It's a matter of educating. You know, this is good for day to day stuff, but this is what you want something here on this table. If you want a good quality picture that you can share and print and really get out there, that's one perspective and have the two things a very distinct mean sitting, looking at Sanders, saying It seems like you're trying to shove him together with increasing force. Yeah, there's we definitely see a convergence and are driving it with with our technology. The the position we took, even with our are pointing cameras is more than a year ago was to put WiFi and pretty much everything and not WiFi just to send emails, but what we want. We want cameras be interoperable with the smartphone, everybody as we want. We want your camera if you buy one to be your smartphones best friend and have them work together because when people are shooting today way understand, particularly not casual shooters. Everybody. Basically, the goal isn't to shoot in a shoe box of photos. It's a shooting share, one way or another, your images. We're gonna go out whether it's to Facebook or instagram. Wherever you want to share. You want to show everybody the images you're making and making your cameras interoperable with your your lifestyle. Smart devices was, it is a key element for us. It's well combining the experience is rolling touch screens in rolling open OS is in like Android OS into our galaxy. Line of cameras lets people have the similar experienced what they have on the phone, but it also gives them the capability to continuously and completely upgrade their device. If you have an open OS camera and you want an interval, ometer, you've downloaded Interval ometer, and if you don't like that interval ometer, you go get another one. If you want an editing program, you download whatever editing program you want on your camera and gives you the opportunity to completely customize the device to how you want to shoot and personally, I believe that that that's that's the clear in an unstoppable direction of camera architectures. And so we're investing heavily in that you can see from our line talking investing that that comes at a cost, though you're being enormously powerful. Process is very big screens into these things, but in large part of the consumer based, we believe that's what they want. I think we we learned a lot this year in a positive way. The Galaxy camera we came out with that has a huge screen, and Zoom was expensive and ah ah, a lot of people in the market. We weren't sure who's gonna buy it, that cameras just blown past everyone's expectations, terms of sales and it's it's a good camera. But the reason people bought it wasn't because of the zoom factor and the Bs I Sensor and all that stuff. It was the experience. They love the big screen on the back. They loved the ability to add APS and it was a resounding success in the market and we believe that that's that's ah now a clear direction we can continue to invest in have successfully. I think it's also important Teoh to accept that. You know, way had a bubble like a 10 year bubble before digital. Everyone had a camera in their house, and then Digital came along and even got a digital camera. Because you see the pictures on the back and and everyone's got digital camera and there is just a huge part of the general public. It doesn't need anything more than what they've got with their phone on. The next phone will be back. I think I read last night that lost. This year. They're expecting to sell one billion smartphones on how many cameras 50 millions like that. I think it's on every seven people. So you know things is a very, very different market. Although all our industry has to do is to make sure that when people do get the bug, when they do get interested, that we offer them a seamless transition to a camera to some kind of fluid or frictionless experience because right now it isn't, you know, even unless you're actually using a camera with built in android. And so yeah, way had a boom. We had. We had 10 years of growth. It's no ever going to come back. You will never persuade someone who is happy with their phone that they need to buy a proper camera because they're happy with their family. Maybe shouldn't be on. They would start to get better pictures of the board camera, but it's no, that's not the opportunity. Opportunity isn't the 1,000,000, people this year board smartphone. It's that tiny slice of them. They want to take their photography further on here. We have some first steps towards making that. But until I can pick up this camera and press about in the sense that to Facebook they can parachute ready Facebook end ideas. What, you want to take a picture of the screen on the back Whole thing. I think that's that's really important is you know, Samsung's put it in its finding a way toe. Make it work signal. See whether it's two different devices, whether it's transferring the images as far as the customers concerned, they don't wanna have to go through a bunch steps. They just wanted to work on DATs where I think three industries like it is. How how do you make that seamlessly just work? So it's easy cause you look a younger generation. Like my young son, it's playing with our waterproof cameras. I said No, I'm going to send it to Mom and Dad and started pushing the back of the camera like that's the future. That's where it's going. We have to plan. I think it's also important to call out the cameras in Smart devices will continue to get better because they have. So it's important as a camera camera manufacturers for us. And it's goal, I think, for all of us to continue to innovate in our cameras and improve where we can, whether it's you know, style, which has been huge changes in style. The retro movement, whether it's in faster lenses, better lenses, more features in the cameras. We have to continue if we want to keep camera looking things existing and selling them that we have to continue to innovate in the vectors of image quality, performance style features OEM and stuff as well. Thanks. Um I think I'm ready to introduce absolutely our next guest. Hi. How's it? How are you? So see if you want. Just quickly introduce yourself. I wonder if I worked for pounders and we started for you to go to change the image in World War. Excellent. Well, thank you for joining us. So sit from your I mean, you're the founder of I fight. You saw this coming quite early. Why is gonna activity so important? So we share. Really? People shared way to make that point. Seven years ago, that was for Facebook in Mobile, actually was were out. So, like, then went share toe Peter and its chair with close Emily. Today we share mobile and we share in names. And so that finally is the right time. Pull off camera mobile interact So to the penalty. How do you think this this urge to share which is driving the industry moments that drive the division of smartphone? And how do you incorporate that into your products? And J. Simpson's got its its way with John. What's your perspective on that? We've actually partnered with I thigh to to optimize how their cards working our cameras. Eso It's been a great partnership. Andi has allowed us to kind of bridge that gap. Andi, I think it's a good step forward. So, um, one of the things which is one of the innovations of the past couple of years in smartphone imaging has Bean the knock your pure view system. It's a very serious camera. It works in a different way to normal. It allows you to zoom without actually having physical elements. Do you think that's a dead end, or do you think that's the shape of things to come? Jane. I think it's a path. The types of technology there that are being implemented in terms of using a lot of pixels and giving people flexibility have been around for a long time, whether it's pixel, binning or digital cropping. Um, so it's a path there, I think, from a from a camera perspective personally, that optical zoom eyes probably a lot more efficient path to image quality. But again that comes at a cost of terms of having a limb, which again, people looking for cameras like So, yeah, be very kind of like the people who make phones. They're constrained by the need to fit everything into a black rectangle that's like four mil thick. And so a lot of work is being done to try and make phone cameras like take a great leap forward, the knock your issues. There's one path. But there are other parts. There are ways of combining. More than one sense of you have an array of 16 or 24 cents is, or whatever whatever you want to have. Andi, You know when? When, when we have parity in pretty much everything else. The screens, the same size operating systems, the same there were looking for. The thing that they're going to use is the differentiator. And right now these in cameras on, I'm sure they will continue to. There is undoubtedly zoom lenses coming there. It's flash coming, and those are the two things that currently stop us from worrying that much about phones assed camera killers. But it's That's the point at which the market splits and you have those who have a phone and they buy the latest wings. It has a better camera on. Then you have photo enthusiasts, which is actually a growing market and is to a certain extent driven by this, however many nothing. It's 400 billion pictures a year that shared via Facebook and Instagram that gets people interested in photography. So at that point, these guys can concentrate on making the cameras better on everyone else will use that phone, No doubt. So I guess. Actually, I want to ask Ziva, question the whole point of Iife eyes to use your proper camera and then give it connectivity options using the card. You were the advantages of that approach from your perspective these days. Yeah, absolutely. So way. Believe they should be able to you coming the audio, um, or if you buy a camera by based on the features price that size sometimes brand but don't bite because it has WiFi doesn't. But for the future of the you actually care about and I fight card to that to connect a T mobile device. So the idea to keep shooting with the camera taken Mabel quality images again. If you're includes es combined DSLR or mere left or appoint, shoot that. You know the hiring when shoes from today are phenomenal, So use them when events are important to you. Share sweet mobile phone the I spy card and share in the instant, uh, the same time through Facebook instagram or your reference off. Thank you. So I think it's here to stay. It's just nail it down. Although the enemy at this point a za camera Fact count Camera reviewers We got them is the enemy or the way we have to try and get in the tent Somehow I don't think I don't. I can't see them as the enemy. You make phones as well as I. You know, if you have a phone with 10 Exume on it, you called a camera or a phone. That's something we're struggling with now. Rs more soon product shipping in the US and it's an S for with zoom lens on. Well, we're calling in a phone because it's it's has a carrier contract. It's carry base. You can use it as a phone, but it's definitely got a big lens on. I can make calls on this. In fact, I dio you Skype on this frequently. Is it a camera from what's obviously a camera? But it's a camera that's LTTE enabled, but somewhere in between, that line's gonna continue to blur and, uh, that cameras and phones will just become lifestyle devices eventually cool retro, certainly the enemy of low end point and shoot cameras. They've already killed them. I mean, it's probably 40% down year on year sales of compacts But, you know, the nice thing about it is that they're going to make these kind of cameras considerably more interesting. Long term, I'll be able to take if I choose to use a camera with a fast lanes and a reflex finder or whatever it is I choose, I'll be ableto immediately. Share it on Facebook, which will give you the validation. I need to have some beautiful pictures of my fruit. I don't see them, those enemies, because you know smartphones are here. As I mentioned before, people are taking more, more pictures. That's good for the entire industry. It's How do you make your camera on your smartphone in the best of friends and work together and and get your pictures out there share with other people? How important? I mean, actually, life is the one thing that always takes a real nosedive. Since you try and turn anything on, let me WiFi GPS or even a movie motor live view mode. It is battery technology, keeping up with what you're putting instantly improving. Um, there was a huge jump from Nike, had a lithium ion. The lifting of my on technologies are improving, um, year over year. Not not arithmetically, but but percentages in the same space for our next 1000 batteries with 1000 million battery. We had another 100 millions to it this year. The designs are getting better. The processes they're getting better so they're improving incrementally in lithium ion. I don't see a new technology coming in the next two or three years to replace it, but the other pieces people making bigger batteries is a 43 100 million. The theme ion battery in this camera. 1,004,200. That's incredible. What takes a week to challenge that takes a little while the charge, but you can watch it as many movies or plays many games of angry birds on it. If you want a test observed just quickly from your perspective, looking at the competition, I mean, you know, if I didn't really have any competition for a long time. But now people are building wireless into cameras and doing a pretty good job of it these days. If your perspective, what do they still need to do to provide a really trouble free connective? It's experience, Yeah, so then I think to see is that more and more cameras have life, which actually does help awareness of white flight activity. So that's totally gripped. We actually had WiFi cameras before we start. The company called. I had baby. Sure one can have a few models. Conviction icon was always white by their now the white by more prevalent. What we're seeing is that it's still not totally automatic. It's not seem like you can just point click and everything happens for you. Where are in our approach? We went into the stick pictures, focus on the camera and focus on having fun with a camera. And have everything happened for you? Totally in the background. So you enjoyed phone can be new pocket. It could be sitting there dormant with screen off. Now you take actually kept everything breast bring to the phone. Same with the IPhone. So the idea is to have a completely seamless, fully automatic, and I think that helps the consumer. Okay, Thank you. Do you think we'll not get time to have a quick unit? Was if so is it? Thank you very much. You're gonna stay on the line. We're gonna move on, so we're not gonna lose you for now. But We're gonna move on a little bit now and talk about the future, all right. I think this is the big thing that everybody has been waiting to hear about. We talk about the product reviews for a 2013 but let's talk about future trends. How do we want to start? Well, I guess we gone through mobile on DSO, I suppose. Let's look a five years out on ball is here to stay. It's a companion, not the enemy, to these products. What is the next five years? Look like John? Well, it's something interesting right now that that Rico's doing this, um, immersive camera. It gives you a degree spherical. It's building upon something like that. That's where it truly is an immersive experience. It's not just catching what's in front of you. It's inside, behind, up, below on. It's really cool technology, and we'll obviously continue to expand on that. You know, the possibilities are very interesting. How do you after everything that's around you basically, just hold it up and press the shutter release, and it captures everything around you and wirelessly transfers it to your to your phone to share so creating things like that, yeah allows you to create a virtual stop me if I'm wrong, But is it a three dimensional pan until around a space? Yes, yeah, yeah. Captures everything in that space. Three Only smaller, in fact, you'll see, is where the cameras it's so expanding on technology like that, you know, put you into the environment instead of just what's in front of you. It's everything around you. Wow, Jay, what kind of cameras in my reviewing in five years time, um, really cool the way you've touched on so many of the trends that that I think will be important going forward four k video with still streams. I think open OS is the connectivity is already here, but all these things will will continue to incrementally improve the devices. I firmly believe they'll be less camera like and war deep integrated lifestyle devices and infinitely customizable because of what's what's happening with the OS platforms. I'm incredibly excited about the opportunities just with processing power in these, you give access to the processing power that's in these cameras with open OS is to to customers to the market. They're going to take these in all kinds of crazy, new interesting directions. These cameras have this one s for, plus our dream processor. It's got more processing power than I think you have been laptops from two years ago. And it does. And once the photographers get get these capabilities in the hands and can control the manager tournament, whatever they want Thes thes devices, air. Just gonna be amazing. One thing we haven't really talked about Mark Touchstone Let me talk about the data rate of video and, you know, some of the knock on effects of a lot of these features is storage and media. I mean, presumably, people were using the cloud now store their photographs, they're not, print them out, bring them in photo albums anymore. Sure. What does that mean for the industry? I think the internal data rates inside the cameras are any issues that people see there will will be solved, just like they were for HD video and high frame rates and all that, um, to your point on cloud cloud storage is is rolling ubiquitously ahead on every other device we we've got from our TVs or computers. Everything else it's a function in most of the cameras I'm using today, not necessarily just locked in. The utilization of Gateway servers by manufacturers mean that I can use not just big name cloud storage on these cameras today. I can use Bob's cloud storage and route it through here. Any cloud storage stock calm, and it doesn't have to be programmed in by by the manufacturer. You put your passport on, it goes through a gateway server, and you're done so so not only will does your camera can your camera talk to a big name cloud storage service. It can talk to your home cloud or your home server, whatever that evolves into and not be limited by by by what I see your don't see coming. But I definitely think that that, um, that's the That's the probably the biggest change in how people store images, video, any content coming from the camp. How do you feel about that? Simon. You and I talk about this a lot of printing anymore. Printing was a funny one. I mean, the photo industry was taken by surprise by the by the smartphone, which I still find somewhat amusing, but they were also taken by surprise by the fact that they discovered that once they didn't have to know imprinted anymore because they used to have two point. There's no choice they couldn't see the pictures on. But I think that what's interesting about the cloud from A from a camera point of view is partly it's the potential to offload some of this heavy lifting like service side processing. Right now, we don't really have the instruction bandwidth within, even with 40 lt and stuff like that to do love this weather. You know, I'd love to be able to say my roof miles away on, then then do most of the work on the cloud until these cameras can talk to the cloud like that camera can talk to the cloud. Then there's a limit to what one can expect, but it's just customer expectations. And once you've used an IPhone or galaxy, I expect my camera to work in the same way, and I would certainly expect to be able to immediately put things up to the cloud. I don't think that in this part of market, if you want to ask me what the next five years old, I don't think this is gonna change a tongue. I think there s l ours or muralists. They will get better with consumer demand is there? They will get android and things like that. But I actually think phones will be where most of the innovation happens because they're forced to innovate continuously because the form factor, Because infrastructural stuff like the speed of connectivity and the Valley don't have that much storage onboard and their battery life issues. And then we'll see that feed back into the real cameras. But I don't expect in five years Yeah, they might be shooting four k video when we might be pulling steals out of them. But I fully expect to be seeing the D 400 for example, within the next five the next five years. Yeah, yeah. Put money on a d d And so you you go family. I'm gonna see you breast in there. Do you print anything anymore? I don't have a family. I do have nieces and nephews. However, um, do I print anything anymore? If I'm printing it is more little art pieces to put up on the wall. But not not not bottoms. If I'm in a fun printing anything. It is more like a photo book or something, not individual pictures. And I'm putting into frames or even the big photo albums, obviously, that you used to dio when you came back from traveling. So from a from a consumer standpoint, it actually kind of saddens me that all of these images are going who knows where? Uh, not not just for myself, but for families for four years to come. It worries me. You have people now will be parents in a few years ago who were using Snapchat, which is, uh, basically just there are more pictures shared by shot by Snapchat on my Facebook, which is a deeply, deeply depressing images shared by going in whatever it is 20 seconds. And what's the age range? I'm guessing right now. It's It's fairly young people. Using it like a messaging service is more like a wave than a picture. But it's the ephemeral nature of photographs is obviously doesn't worry. The latest generation of shooters. Yeah, I mean, well, this problem marketing infusing inside of the market will grow. There's no doubt many people will get sick of taking great pictures and sending them and having them disappear again. Sharing with someone you can add a Snapchat most week inches is probably, you know, the output side of it is I think they're still opportunity there because, as as an enthusiast myself, I love print out a picture or creating the book and sharing it with Family Member, especially for a special moment or a special photo and at the same time, the cloud while it is. It's kind of scary because, like, what if something happens? What what if my pictures aren't there anymore? It's It's here. People are using it with their smartphones, and they're using it with their other devices. So it's, you know, building that confidence. Yeah, it's gonna work, and I can't pull a picture down and I can print it out, and I can have that object, not just something on the screen. Yeah, there's no doubt that as well, the workflow, which is not a word that consumers would use but the idea of my camera being able to decide, or me being ableto categorize pictures according to those which gonna go to family. And there's what you're gonna go into storage and there's demanding respect or love companies recently who are trying toe organize people's digital lives. You 100,000 pictures and you haven't deleted them all. Then it's nice to be able to actually find the picture. You will look evil based on whether it's someone's face or local. The event Right now, the cameras in that respect to dumb I mean the Android Iris will give you access to far more powerful tools. But yeah, I mean, it's sharing these days is mostly screen based. I can send I have pictures in one folder that my mom could look in England. You know, this is it's already fragmented and it's all a bit. You have to know what you're doing for the most part, so I think that we'll see changes there. What about technology wise? I mean, the only technology significant changes in technology that we're seeing is like ice Ellis cameras as well. Let's let's ask this. Actually, we've got one more question before you have to wrap up, try and ask everyone to keep it quite sure what is the next big thing? It was it was mirrors. Then it was focused on. It was digital. What's the next big We got here to go still goes live online. So actually, I'll ask this question to you first. What's the next big paradigm shift? Keep it really concise. Okay, so the next big thing, I think, to be services. So having consumers do more with the images and have the work be done for them so that they can spend less time speaking about what to do but actually have everything completely be automatic. So they actually enjoy the images. Have a B, A B, a print via anything else that is via put gifting or online. All right. Thank you, Jay. I'm gonna be trite and say, uh, APs There's so many APS up there for phones now and mobile devices. But they don't really support the activities of serious photographers and enthusiasts. There's a huge opportunity for raw. There's a lot of work being done in raw and apse with better camera controls. I see all that effort exploding in the next the to 14 months and really serious work being done for APS to support the high. And I think we're all kind of singing the same tune here. There's no doubt that smart, really small cameras is going to be the next big thing, and I think they're just putting all that processing power into a cameras. Well, will allow you talk about raw. I mean, there are cameras whose senses now basically don't. You don't need to set the I. So Shooter issued any setting and then just used the raw file. And you know, there's no there's no ah, there's no hit. You don't get extra noise if you shoot under exposed, But then he's a lot more processing power on the camera. So I think your processing power APS Andi sharing lifestyle stuff will be big no matter what class of camera I think, is putting all those together and its intelligence, whether it's in the camera or in in the in the image itself. So you knew when it was taken where it was taken, who's in that picture, what the weather was like, what the score the gate was think, Yeah, I think there's a great opportunity there to get more out of the picture because, you know, a picture is telling a story, but how far can you expand that story? What can you add to that story? You know It's the fifth inning of the game and it was beautiful weather which don't know his five minutes later start hailing and it was stopped, you know, you know, adding that kind of intelligence tow and my best friend was there and, you know, he just got engaged the day before, whatever, whatever it is, But it's adding that intelligence make sure very holistic. And that's part processing. That's part Cloud, this part sharing. It's kind of wraps it all together. Well, for me, as here on creative, I've I just want to say, in terms of the what I'm hearing a lot of people saying here is about education and people on the consumer out there, not necessarily knowing how to use these things, what these new technologies are, and what I'm really excited about is, is what we're doing here in terms of photography, education and really laying the field where people have access to events like today with the editors of DP Review being able, Teoh talk directly to you guys. So I'm excited to see the future of this partnership as well. Yes, sir, we my big production, your future is four k on video. Still convergence, probably in the professional space in the professional media. Still, media. Because if you can shoot 68 million pixel frames a second shooting four K video as a photo journalist, I think at that point you don't need a stills camera anymore on. I think that will actually bring up a lot of really interesting questions which will filter down into the consumer space, and we'll see convergence happening. In a much more interesting way. HD Video distills the two megapixels. That's not good enough, but date. That is good enough. So I think that might actually really change the way we think about still on video in the next five years. That would definitely change the way we think about it, because I think especially what we see here, a credit five is just that video is still, especially at the consumer level, is still a big unknown. Switch it around toe where kids are taking videos with their little you know, whatever it is, and then picking out their favorite stills from that. That's a total paradigm shift, and when the weather with the professional photographers go enthusiast exactly