Is the Race for Smartphone Camera Megapixels Over?

Sep 23, 2013

Is the Race for Smartphone Camera Megapixels Over?

EVA DOU

The abbreviation µm (micron) is probably a lot more obscure to the average smartphone user than MP (megapixel). It may become more familiar, as some smartphone makers have been saying they no longer care so much about higher pixel count, or megapixels. Several high-end smartphone makers are focusing this year on different camera measures such as the size of the pixel, or µm. Apple Inc. and HTC Corp.2498.TW +0.72%both launched their premium phones this year with larger pixels, not more. While Apple kept the same pixel count as last year, HTC actually halved its pixel count on its flagship phone, arguing that having fewer pixels allows room for larger ones that capture more light.“It is not a race of the megapixels anymore,” said CK Lu, Gartner principal research analyst in Taipei. “Some phone makers are deciding to make bigger pixels instead, which is a tradeoff, but results in better quality pictures in low light.” HTC was the first to trot out the word “micron,” decking out its flagship One device with an “UltraPixel” camera that was only 4 MP – compared to the iPhone 5S’s 8 MP and the Samsung Galaxy S4’s 13 MP – but with pixels 2.0 micron in size, far larger than competitors.

Apple made a similar play with the iPhone 5S. At the launch earlier this month, marketing chief Phil Schiller said, “We know a secret that bigger pixels offer better pictures.” While this has never been a secret for those who have studied camera mechanics, it is new that smartphone companies are choosing to push pixel size.

Of course, some smartphone companies are betting on the opposite tack. Most notably,Nokia Corp.NOK1V.HE +2.46% unveiled its Lumia 1020 this year with a whopping 41-megapixel camera, which it is touting for its powerful zoom and flash. The trade-off is that it’s a lot heavier, 5.56 oz. compared to the iPhone 5S’s 3.95 oz.

Analysts say that while smartphone camera megapixels will likely continue rising as technology improvements allow for greater power in lighter devices, it is no longer a straightforward numbers race like before.

“Some of the lower-end companies will continue to focus on just megapixels, but higher-end smartphone makers are looking for other features to differentiate their cameras,” said Barclays analyst Dale Gai.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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