Bloomberg: Nikon Cuts Profit Forecast

Started Aug 8, 2012 | Discussions thread
Cy Cheze Senior Member • Posts: 2,028
Compact camera sales falling

Sales for the quarter ending June, 2012 were up slightly over the prior year, but operating profits were down from Y37b to Y23b. Net income was down from Y31b to Y16b. Management says that a fall in compact camera sales was somewhat offset by a rise in sales of interchangeable lens models, but does not break out profits for the respective segments. Imaging products in generall accounted for over 70% of sales and most of the profits.

http://www.nikon.com/about/ir/ir_library/result/pdf/2013/13_1qf_c_e.pdf

Similarly, Canon reported a drop in compact camera sales. Canon's office products divisions account for more sales than the imaging products sector, though the latter accounts for nearly the same amount of operating profits.

http://www.canon.com/ir/results/2012/rslt2012q2e.pdf

Likely, both companies will cut back the P&S camera sector, offering fewer models than before. Whether they try to compete at the high-end, by offering their respective answers to the Sony RX100, is anyone's guess. From a corporate vantage, Sony's initiative has little weight anyway, unless millions upon millions of people forego their next iPad or Galaxy in favor of a $650 pocket camera without WiFi, 4G, GPS, or Angry Birds.

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