Nikon sales drops because of the phone cameras development
Nikon is one of mayor companies specialized in optics and imaging products. Among its product line-up are many different products including cameras, lenses, microscopes, measurement instrument and other products. But the main focus of the Nikon’s business is the photo camera market in which the point and shoot cameras have a very important place. Facing the smartphone camera competition, the sales of these compact cameras have dropped by 25% on year’s base.
That means the number of people who are using smartphones for taking pictures is increasing. With the constant development of the phone cameras, the point in which they offer basically similar performance as the budget-oriented cameras is already reached. So, many consumers don’t see the point in having both a camera and a smartphone in their pockets.
In a recent interview, Nikon’s president Makoto Kimura mentioned that his company can soon change its approach in order to be more competitive. Nikon’s shares are currently offered for $55 with a 28% declined profit compared with the previous year. The future is not so bright; Nikon expects the market of compact cameras to shrink 12% in 2013. At the same the advanced camera market is expected to gain 6%.
According to Kimura, Nikon is developing a whole new product range which is expected in the coming years. Does that mean that Nikon is working on a mobile phone? It is possible, even if the president declined that possibility. Kimura added that the rapid expansion of the mobile devices has changed their business and environment. To survive, Nikon needs to re-think its overall strategy and the launch of a Nikon camera-phone could be the big move to regain its market share.