DSLRUsers.com

I haven't investigated deeply, but my thoughts are this.

From what I have read, DSLR accounts for not only a replacement for SLR, but also a renewed interest in SLR photography increasing sales overall.

An increased market means increased production means lower production costs (=greater margin)

However, equipment cost is high - compared to what - a prosumer DSLR = mid-range mountain bike = 2nd hand car. The joke in MTB is that many times the MTB hanging of the rear rack is worth more than the car.

I can think of two main reasons for this
- emerging technology - as we are switching over, it will be a while before it settles down to more commoditised sales (D50/350d are good examples of this happening)
- Get it while the going is good - camera manufacturers are reaping the reward of the 'good' times. Much like costs for petrol or supermarkets are highest on the busiest days.

With DSLR, I think it's going to be a few more years before prices start to hit a sweeter point - or maybe it will always remain a specialised market.

My conclusion is that there must be increased competition to force the two major players to compete not just with each other (duopoly).

Therefore - buy Zenitar, Tokina, Sigma, Vivitar

I must have been looking at too many lenses lately and going ahhhhh...

Justin

I think the sweet spot has been reached and gone beyond.

For example:

2000 - Nikon D1 2.7MP pro camera - price in Oz approx $10K
2006 - Nikon 200 (far superior to the D1) - body only (from Trading Post and in Oz) brand new $1,735.00

I agree with the emerging technologies over the new horizons every day.

Competition will go further on as other electronic companies move into their development in the DSLR market.

With comparison of whats with SLR cameras 20 years ago, the margin between "amateur" and "professional" is very clear. Equipment cost and quality which each equipment will produce is clearly identifiable and so are the price tags.

Newer circuit technology and silicon chip advancement have brought photography from a 'profession' into a popular 'hobby' of many people nowadays because of its lower price margin at high quality outcome. Thus making the marginal line between amateur and professional very thin, or many refer this being a "grey" line.

Emerging technology, advancement in production lines, all these have contributed to the production cost in many equipments. Circuits and silicon chips are produced at massive scale, and assembly of products are being improved with higher manufacturing skills.

All in all, mass production = reduced pricing = higher demands and back. I believe if this competition continues, many of the leading optical makers will have to force themselves to make more of 'consumer' products because of its high demand. Still, the professional lines of product will remain to the highest standards and quality to who really needs them to feed their kids and family. PS. I couldnt believe I wrote that