Camera phones have failed to quash consumer thirst for digital cameras, according to Lyra Research, which predicts that digital camera shipments will exceed 130m in 2010.

?Sales in 2006 showed that consumers? appetite for digital cameras has not been abated by the spread of camera phones or by existing digital cameras in the household,? said Lyra?s director of consumer imaging research Steve Hoffenberg. ?Current digital camera users upgraded in droves to new models offered by every major manufacturer, lured by image stabilisation features, broader zoom lens ratios and higher resolution sensors.’

Hoffenberg added: ?While the upgrading activity will eventually taper off, it shows little sign of vanishing through the end of the decade, as camera makers continue to pack more value into their products.?

Worldwide digital camera shipments rose 21% to 98m units in 2006, according to Lyra, which provides market information to digital imaging companies worldwide.