Where is the industry heading - some thoughts.

Started 8 months ago | Discussions thread
meland
Senior MemberPosts: 3,880
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Re: Where is the industry heading - some thoughts.
In reply to GeraldW, 8 months ago

GeraldW wrote:

As has been pointed out in several other posts on this forum, all of the camera companies, except Nikon, get the majority of their income and profits from something other than cameras. Nikon is 74% camera derived, Canon 26%, Olympus 14%, and Fuji 3%. So if they bleed red ink too long, there is a real possibility that their Board and shareholders will shut it down or sell it off.

Pointed out many times perhaps. But several of the companies you mentioned started out in the Photographic business - Nikon, Canon, Olympus, Fuji. As such this is part of their heritage and being Japanese, with a slightly different corporate mindset to that of some Western companies, they are very reluctant to let that go even if their photo divisions are not very profitable. In the case of Canon their photo video division is actually very profitable so that does not apply in any case - but it did in the late '80s when Business Equipment was going gangbusters and photo was in the doldrums and there were calls from some to dump it. Despite this the Canon Board kept faith with photo and their long term vision was probably rewarded.

The thing that many ignore though is the halo effect of cameras on other parts of the business. Arguably copiers, chemicals and steppers are not particularly sexy and so the image of a company to the general public can be considerably influenced by a division producing attractive consumer products with prominent visibility. Even if those products do not produce much or indeed any profit. Think of it as a marketing expense.

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