Wireless Sector Pins Hopes on Shutterbugs

If the wireless sector has its way, people will be saying "cheese" to cell phones instead of cameras next year.

Companies are pouring millions of dollars into the development of mobile phones with built-in or attachable cameras. Nokia(NOK Quote), Samsung, Sony Ericsson and a slew of Asian and European manufacturers are planning splashy launches of new phones starting in the first quarter of 2003, hoping to boost sales amid declining wireless-subscriber growth.

Is the industry right to place such a pricey bet on the gadgets? Some analysts say yes. The phones, which first began to appear in Japan and Korea nearly two years ago, are expected to outsell handheld computers globally this year and will outpace the entire digital-camera market by 2004, says Neil Mawston, an equipment analyst at research firm Strategy Analytics. ...