Japan-based brand-name DSC vendors are expected to outsource over 75% of the production of their DSCs to contract makers in Taiwan, including Canon Marketing (Taiwan) and Altek, in 2011 in order to shore up their profitability.

Although Nikon, Sony and Panasonic may not release their orders for DSLR cameras, Taiwan-based ODMs are likely to venture into the production of DSC models with high power optical zoom, including 30x and 36x models, the sources noted.