Dec 10 (Reuters) - British chipmaker CSR is halting the development of products for digital cameras to focus on stronger growing markets like music, audio and automotive.

The Bluetooth technology specialist said it was withdrawing investment from its camera-on-a-chip platform because of weakness in the digital camera market, which is being eroded by imaging technology in smartphones.

CSR said it would take an impairment charge of about $90 million this year and cut about 200 people working on its camera technology by the end of the second quarter of 2014.

Cameras contributed $36 million of revenue in the first nine months of the year, 6 percent of the group's total.

Shares in CSR were up 2.3 percent at 520.25 pence by 0807 GMT, as analyst Eoin Lambe at Liberum Capital said the exit was a positive move.

"It shows management are very disciplined and only target segments where there is profitable growth," he said.

The group also on Tuesday narrowed its fourth quarter 2013 revenues forecast to $200-210 million from $195-215 million.

(Credit: IVT)