Lexar says thanks for the memory
Lexar says thanks for the memory
Lexar Media has secured the contract to exclusively provide Eastman Kodak with memory cards for all its products that require removable digital memory, such as digital cameras. The agreement is a major coup for Lexar, given the rapidly increasing mass-market adoption of digital cameras, mobile phone cameras, portable music players and other consumer electronics devices.
As part of the exclusive multi-year agreement, Lexar Media will manufacture and distribute a full range of Kodak branded memory cards. Both companies will market the products worldwide.
“This agreement is ideal for both parties,” said Bernard Masson, president, Digital & Film Imaging Systems, and senior vice president, Eastman Kodak Company. “For Kodak, it represents another step in our effort to accelerate the growth of our digital businesses by providing customers and our retail partners a full suite of Kodak branded memory cards that will work with virtually any product and system. Lexar will benefit from Kodak’s worldwide brand presence and massive global distribution network.”
“We recognise the power of the Kodak brand across photography and imaging fields and we are pleased that they have selected Lexar to help drive the Kodak brand into this fast-growing category,” said Eric Stang, chairman, president and CEO, Lexar Media.
According to IDC, worldwide digital camera sales are expected to top 68 million units in 2004 - a 39 percent growth over 2003 - and grow to over 87 million units in 2007. In addition, worldwide camera phone unit shipments are expected to reach 186 million in 2004 and grow to more than 422 million units in 2007. This year alone, digital camera sales will drive retail sales of more than 100 million memory cards with an expected retail sales value of over $4 billion.
“With the rapid and consistent adoption of digital technology in cameras and cell phones and with ever increasing resolutions, we expect digital memory cards to become one of the primary storage devices for most consumers worldwide,” said Chris Chute, senior analyst for Worldwide Digital Imaging Program of IDC.
The full suite of Kodak branded memory cards is expected to be available in the fourth quarter of 2004. The product line-up will include Secure Digital, Mini-SD, Multimedia Cards, CompactFlash, with additional media formats to be offered in the future.
Financial terms of the agreement were not disclosed.
Meanwhile, Lexar Media has announced the expansion of its Australian distribution channel and the opening of its new sales and marketing office in Sydney.
Tech Pacific and WestGroup will now distribute Lexar's range of digital memory cards, USB flash drive products and storage media accessories to an established customer base of retailers, government agencies and corporate organisations.
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