According to a report in the Wall Street Journal, Olympus is to cease production of its cheapest V-series point-and-shoot compact digital cameras. This follows a financial report this week which showed a group net profit of 8.02 billion Yen in 2012, driven by the company's medical instrument business, but a loss of 23.07 billion yen for its imaging business. In response, according to the WSJ, the company has slashed its sales targets for compact cameras from 5.1 million units in 2012 to 2.7 million for the current business year. 

Olympus is to cease production of its V-series compact cameras - a range of cheap point-and-shoot models which includes the sub-$100 VG-160.

Olympus's V-series compact cameras are priced under $200, but despite their low cost, Olympus (and every other camera manufacturer) has struggled to sell them in the face of ever stiffer competition from smartphones and tablets at the bottom of the market. Rather than slug it out at the entry-level, Olympus is focusing on higher-end compacts and its growing range of mirrorless interchangeable lens cameras, including the 16MP E-P5, announced just last week.

via Imaging Resource