Webcams

Logitech wins again, followed by IBM, who was also the runner up last year. D-Link makes its entry into the Users' Choice Club at number three, followed by Kodak, Creative and Mercury, in that order. The most significant finding is that the gap between the winner and others has reduced considerably this year.

Logitech scores a perfect 100 in brand loyalty, a unique position in this year's Users' Choice awards. No other brand in no other category has achieved this. D-Link follows with 73 percent brand loyalty and Mercury is next with 60 percent. Creative has a fairly low brand loyalty of 57 percent.

The webcam segment is in many ways similar to the surround-sound speaker segment, and some of the players are the same. The pattern of dissatisfaction levels is also similar. Barring Logitech, current users of all other brands in the Users' Choice Club are showing a double-digit tendency to shift. And for the 'Others' category, the tendency, when shifting, is to move largely to one brand-the same one as in the case of surround sound speakers-Creative. The dissonance between the two is mainly in the very high brand loyalty for Logitech
webcams.

One thing that we need to keep in mind is that the digicam and the webcam spaces are fast converging, with almost all digicams offering webcam functionality. That perhaps explains Kodak's strong showing in this segment. Almost all the players in the Users' Choice Club here offer digicams as well as
webcams. 

In the longer run, this convergence may well lead to the elimination of a separate webcam's category, with the webcam being just functionality on offer from most
digicams. 

How much time for that to happen? My guess is about two years. Any takes on that? 

Mind you, I am not saying that there would be no 'webcam only' webcams in the market. There might be niche uses for them. What I am saying is that people will end up buying much more of digicams for the combined functionality of digital stills, short videos and webcam functionality, rather than buying separate webcams and
digicams.