Digital camera makers Ability Enterprise and Altek saw gross margins for first-half 2011 slip on year by 3.11 percentage points and 1.74 percentage points respectively mainly because of falling average selling prices (ASPs), according to the companies' financial reports.

Ability, which revealed that first-half 2011 ASPs dropped 10-15% from year-earlier levels, shipped 11.5 million digital cameras in the first six months of 2011, increasing 7% on year. But consolidated revenues for the period decreased nearly 15%.

As material costs, ASPs and foreign exchange rates tend to become stable, it expects its gross margin to rebound in the third quarter of 2011.