Camera Sales: All is worse and worse

Vitaliy_Kiselev

According to Japan-based BCN, DSLR camera sales volume and value in the Japan market in June 2016 shrank 35.4% and 39.3%, respectively, on year, Digitimes Research indicated. Canon and Nikon were the two largest DSLR camera vendors in June.

and

Canon Inc third quarter operating profit fell 48 percent, hurt by a strengthened yen following Britain’s vote to leave the European Union.

Operating profit for the three months ended Sept. 30 declined to 40 billion yen ($383.62 million) from 77.3 billion yen a year earlier. Five analysts surveyed by Thomson Reuters estimated an average third quarter operating profit of 58.3 billion yen.

The world’s biggest maker of cameras and printers also lowered its operating profit forecast for the year through December to 235 billion yen from a 265 billion yen estimate in July. ($1 = 104.2700 yen) (Reporting by Tim Kelly; Editing by Muralikumar Anantharaman)

Shit happens.

caveport

@Vitaliy_Kiselev Sorry, I forgot that you attributed it to Nikon. Top management don't write the words, but they DO approve it.

Vitaliy_Kiselev

@caveport

What exact quote you mean?

caveport

@Vitaliy_Kiselev You did not give source of quote.

Vitaliy_Kiselev

Even Animated History of the Camera ends with iPhone

Vitaliy_Kiselev

@caveport

Are you thinking that this report is made by top management? Normally it is made by some quite smart people who just hate all this but know the words that must be present.

caveport

"Our aim is to increase value creation by enhancing our ability to generate profits." This kind of meaningless management speak is what kills companies. They really mean " We would like to make more money by increasing the amount of money we can make."

Vitaliy_Kiselev

Nikon Results

We were unable to effectively respond to weakening market demand and intensifying competition. As a result, our profits declined and we failed to meet market expectations.
We will discontinue the existing medium-term management plan. We will launch a “Preemptive Restructuring” plan while financially sound, to create the foundation for Nikonʼs “Next 100 Years”. Our aim is to increase value creation by enhancing our ability to generate profits.

Please do not ask how much sake you need to drink to write all this.

http://www.nikon.com/about/ir/ir_library/result/index.htm#y2017

caveport

Supply and demand. We are over supplied with cameras, therefore demand reduces. I think high quality imaging is a niche business (as it was in the film days) now that every phone has a reasonable quality camera built in.

Vitaliy_Kiselev

Nikon Corp cut its full-year unit sales forecast for high-end cameras for the second quarter in a row on Thursday, as a dramatic fall in demand among photography hobbyists that began last year accelerated faster than expected.

Nikon plans to eliminate about 1,000 jobs in Japan, or 10% of its domestic workforce, as the company shifts resources away from once core businesses to medical devices and other growth areas.

Vitaliy_Kiselev

Olympus

http://www.olympus-global.com/en/ir/data/brief/2017/index.jsp

MaxDepth

Bleak reality.

Vitaliy_Kiselev

Interestingly in the 2015 fiscal year, this strategy seemed to work for Sony. Sales revenue in the Imaging segment was down, but profit was up slightly. But so far 2016 is seeming like a different story.

Again, see global picture, and such strategy can't work in long term as cameras are not cars and rich people do not collect them normally. Actually I think that in 2 years we will see special limited cameras and versions all around the market from each manufacturer, as they will try to exploit exactly this.

davedv

The higher prices are a deliberate part of Sony's strategy for their Imaging Products division. The sales in camera units are shrinking so they are focusing on higher priced premium models to try and maintain profit.

It's all in their various financial reports. Here's one from earlier this year: https://www.sony.net/SonyInfo/IR/calendar/presen/irday/irday2016/IPandS_E.pdf

Interestingly in the 2015 fiscal year, this strategy seemed to work for Sony. Sales revenue in the Imaging segment was down, but profit was up slightly. But so far 2016 is seeming like a different story.

Vitaliy_Kiselev

@Manu4Vendetta

It is good idea to read more economical posts here :-)

http://www.personal-view.com/talks/discussion/6770/the-servant-economy-where-americas-elite-is-sending-the-middle-class-/p5

Check last posts with gif and see only at the right side of chart :-) And you will get the idea why.

Manu4Vendetta

I dont understand why if the business is down, the new cameras are becoming more expensive. One way to encourage serious than the price were more reasonable.

davedv

Does the Sony Imaging Products and Solutions Segment include image sensors, or is it mostly just photo and video cameras?

I had thought that the image sensor market was doing ok and had been growing in recent years (even as the camera market has been shrinking).

MirrorMan

I wouldn't be so quick to blame smart phones as there are a number of factors involved. I'd say market saturation is a big one. It seems the innovation curve for mirrorless is slowing down. And how can Canon and Nikon release practically the same camera year after year and expect long term growth? I don't have numbers but the chairmen of Nikon already expressed his concerns back in 2010. http://www.reuters.com/article/nikon-president-idUSTOE63I07820100419

Myself, I get caught up in more existential questions like, what does photography even mean these days when practically every electronic device has a camera and every image can be replicated an infinite amount of times?

LPowell

While DSLR's are inevitably headed for extinction, I'm wondering how lens sales are doing? How long before we see headless smartphone-controlled mounts for Canon, Nikon, and Sony lenses?

Vitaliy_Kiselev

Sony reports

Vitaliy_Kiselev

Canon camera units sold dropped from around 50 millions in year 2012 to below 10 in current year.

Vitaliy_Kiselev

Fujifilm results

http://www.fujifilmholdings.com/en/pdf/investors/finance/materials/ff_fy_2017q2_001.pdf

Azo

My point with posting the pictures is to illustrate that the older cameras such as the Nikon D600, D800, Canon 5D MarkII, 5D MarkIII etc are still relevant for professional photography. This is yet another reason that cameras are not selling as much. Especially considering that Canon and Nikon have not introduced anything really groundbreaking to entice users to upgrade.

Vitaliy_Kiselev

@Azo

Please enlighten me and elaborate further on this thought.

I already did. You just missed first part of the post and focused on second one.

Vitaliy_Kiselev

Some fairly recent photos from my D600 at the beach of course...

How it is related to this topic? May be use D600 one?

Azo · HMC 10-15-2016-1.jpg

Some fairly recent photos from my D600 at the beach of course... Also a couple of shots from my studio high key and low key...Why do I need a new camera again???? Oh thats right 42 megapixels!!! ;-) LOL

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