The market researcher had projected digital camera sales would top out in 2007 or 2008, but now expects growth to continue through 2010.

"Price declines are happening much more rapidly than shipments are growing," said Ed Lee, director of InfoTrends, at the Digital Imaging conference. [Those price declines] "probably are one of the reasons sales are up."

Mr. Lee also noted that while consumers used to share digital cameras with their entire household, prices have fallen so much that people are buying cameras for their own exclusive use.

"We’re seeing a trend toward one camera, one person," he said. "In the past you had film cameras being a household item and everybody shared that camera. But with advent of cell phones and MP3 players, people like to have their own individual products."

Infotrends found that the average number of cameras per household in the US rose from 1.4 in 2006 to 1.5 as of September 2007.

Via InfoTrends