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Gartner Dataquest Says Photo Kiosks to Be a Big Hit With Digital Camera Users
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SAN JOSE, Calif., December 12, 2000 - Photo kiosks will play a key role in the transformation of consumer photography in 2001, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). By the end of 2000, digital photographers will swell to more than 10 million U.S. households, and as a result, there will be great opportunities for photo kiosk vendors. The worldwide installed base of photo kiosks is projected to double by the end of 2001, reaching 60,000 devices.
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Photo kiosks have been around for years but have been used mostly to copy photos. The new photo kiosks allow consumers to input digital images or scan photos to print, upload to a Web page or otherwise communicate their photos.
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A recent Gartner Dataquest survey showed most digital camera owners are "very satisfied" with their newest digital camera and are most interested in electronic viewing and simple sharing via email of their digital photos. "The most important contribution photo kiosks will make to digital photographers will be to deliver an attractive combination for digital photo printing: high-quality prints at a low cost and within a familiar, convenient environment," said Andrew Johnson, vice president for Gartner Dataquest's worldwide digital document and imaging group. "We believe digital photographers will flock to digital photo kiosks in the near term as an attractive alternative to home printing."
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In a Gartner Dataquest survey of 1,000 households with digital imaging products, 80 percent of the respondents stated they were aware of the capabilities of photo kiosks, but less than 10 percent had ever used one. As increasing numbers of digital camera owners take more digital photos, there is significant latent demand for the high-quality photo output and convenience that kiosks can offer.
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"As kiosk vendors provide easier, more accessible, less expensive ways to print photos, kiosk use will explode," said Andrew Johnson, vice president for Gartner Dataquest's worldwide digital document and imaging group. "Kiosk vendors and their partners will find new profits from on-screen advertising, e-commerce partnerships and breakage from prepaid, stored-value cards."
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New kiosks from established vendors and new types of kiosks from new vendors will contribute to the market expansion. Kodak has expanded its Picture Maker product line, and Pixel Magic is looking to expand placements of its PhotoDitto and Digital Print Station. New self-contained kiosks from Digital Portal Incorporated (a joint venture between SanDisk and KIS/Photo Me Group) and Gretag as well as terminal-type kiosks from Agfa and Fujifilm that feed digital minilabs will start appearing in stores early next year.
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While not yet on the market, the simplicity and low cost of the new online photo upload kiosks could drive rapid sales next year. These terminals will be little more than flat-panel touch-screen devices with memory card readers and an Internet connection. "Snap-happy consumers can unload their photos and clear their memory cards in a matter of minutes. All financial transactions could happen at the photo Web site, so credit card readers may not be necessary," Mr. Johnson said. "Watch the photo web sites who are partnering with digital camera vendors, especially camera vendors that do not currently have a piece of the photofinishing pie, to be the first out with these units."
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Additional information is available to subscribers of Gartner Dataquest's digital document and imaging group. To subscribe to Gartner Dataquest's programs, please call 800-419-DATA, or 408-468-8009. More information about Gartner Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at www.dataquest.com.
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Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.
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About Gartner
Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2000 revenue of $859 million. Gartner's 4,300 associates, including 1,400 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com.
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