M:Metrics has reported that the penetration rate of cameraphones in US is already 51% or 106 million mobile users, still low compared to European countries like Germany, France, Spain, UK, and Italy.

The increasing use of cameraphones has created a dent in the sales of wall papers and phone graphics - a decline of 5% compared last year. Conversely, it propelled the use of personal photos using, what else, their cameraphones and triggered increase in photo messaging.

"While a cameraphone in the pocket of most mobile phone owners may have picked the proverbial pockets of graphics publishers, the penetration of this technology has a positive impact on operator data revenues overall as consumers increasingly purchase photo messaging bundles," said Mark Donovan, senior vice president and senior analyst, M:Metrics.

Despite a slackening of demand for graphics, Donovan notes that such content is used to good effect by purveyors of off-portal content to entice subscribers to sign up for subscriptions. "Graphics remain a preferred type of content because of the more attractive terms typically associated with licensing of branded graphical content compared with the revenue splits that music labels and publishers expect from ringtones. However, graphics publishers have to work a lot harder and offer compelling, branded content to generate consumer interest."

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