Nikon says brisk digital camera sales to lift profits

[photogene]

TOKYO : Japan's Nikon said that rising sales of high-end digital cameras were expected to boost its operating profits by 70 percent over the next three years.

Nikon, which has decided to stop selling most of its film cameras in favour of hot-selling digital models, said it would invest 265 billion yen (2.25 billion dollars) over the same period to strengthen its core business.

Under its three-year business plan, the company is aiming to post operating profit of 90 billion yen, current profit of 80 billion and revenue of 900 billion by the fiscal year to March 31 2009.

"The new business plan should allow us to enhance our leadership position in the high-end single-lens reflex (SLR) digital cameras market, while permitting us to grow even in a highly competitive market," president Michio Kariya said Wednesday.

In the current year Nikon, which also makes 'steppers', or etching machines used in the production of semiconductors, expects operating profit of 53 billion yen, current profit of 34 billion and revenue of 710 billion.

To enhance its position in the SLR digital camera and stepper markets, Nikon said it will spend some 165 billion yen on research and development alone to speed up the development of new products.

Nikon aims to boost its share of the SLR digital camera market to 42 percent by the third year of its business plan, from 32 percent now, Kariya said.

Nikon, along with Japanese rival Canon, is increasingly focusing on high-end digital SLR cameras which are more profitable than cheaper digital compacts where competition is fierce and demand peaking.

The Camera and Imaging Products Association of Japan sees low-end compact digital camera demand rising just four percent in 2006.

However shipments of high-end SLR digital cameras are seen expanding 23.4 percent this year. - AFP/de


http://www.channelnewsasia.com/stori...200675/1/.html

[espn]

Mtl!!! *censor* *censor* *censor*!!!!

[longkangman]

So meaning hi-end camera price drop and low end price up
TSM

[BreakThru]

Oh... does that means Nikon going to push out new products like Canon is doing? Perhaps we might start seeing new bodies and lenses every year instead of the usual 2-3 years one. If this is the case... think I won't *censor* when new product is out... learn from the eg of 20D & 30D.

[smallaperture]

dSLRs - big profits for Nikon and Canon. But that means grossly overpriced for consumers.

[dslang]

Originally Posted by smallaperture dSLRs - big profits for Nikon and Canon. But that means grossly overpriced for consumers.

Grossly overpriced? You have to be joking. Digital is such a new thing, and yet we are getting amazing cameras for prices comparable to film SLRS just a few years ago.

Neither Canon nor Nikon can afford to grossly overprice their products when competition is so fierce.

[S11loop]

GOOD MOVE i think nikon understand their photographers well .

[Ridicule]

Nikon Nikon Nikon

[zac08]

Let's wait for new and better products soon...

There will be much fierce competitions and the consumers will stand to gain in such scenarios...

[mpenza]

Originally Posted by BreakThru Oh... does that means Nikon going to push out new products like Canon is doing? Perhaps we might start seeing new bodies and lenses every year instead of the usual 2-3 years one. If this is the case... think I won't *censor* when new product is out... learn from the eg of 20D & 30D.

Nikon already started doing it for some of the recent DSLRs, e.g. D2Hs and D70s were released shortly after D2H and D70 with small improvements. Think it's a good trend, rather than bad. If u have the thinking that cameras are investment, u'll always be on the losing end.

[markccm]

the alphabet S behind the model number has been around since the early days.

for example the F801s

[net-g]

Other than increasing new models, they should pump up their production capacity. Must let the consumer Buy Buy Buy immediately instead of waiting few months for stock.

[smallaperture]

Originally Posted by net-g Other than increasing new models, they should pump up their production capacity. Must let the consumer Buy Buy Buy immediately instead of waiting few months for stock.

I guess Nikon grossly under-estimated the response to the D200. No company in their right mind would want to hold back any market demand. We all know these electronic products get obsolete very fast, so must sell fast before new models are released. From what I heard, by this month, the backlog of orders is more or less filled already......

[espn]

Originally Posted by smallaperture I guess Nikon grossly under-estimated the response to the D200. No company in their right mind would want to hold back any market demand. We all know these electronic products get obsolete very fast, so must sell fast before new models are released. From what I heard, by this month, the backlog of orders is more or less filled already......

You work at Nikon? How did you know it was Nikon that held back the stock?

[ak6110]

Hi Guys,

Japan is going to invest XXX billions of dollars into the R&D, do you think that the next carmea will be a full frame DSLR? What will happened to the current digital lens, are they are ble to use on these full frame DSLR?

[yanyewkay]

Originally Posted by espn You work at Nikon? How did you know it was Nikon that held back the stock?

relak..he didn't say nikon hold back stocks.. he said

Quote: No company in their right mind would want to hold back any market demand.

anyway, with the rise of the internet, some companies have a new and different approach to testing and bug discovery in case their alpha and beta testers missed it. There are only limited number of testers against the unlimited combinations of real life usage.

That is to release an initial small quantity of products and monitor the internet community closely. If all is well they release a 2nd batch of slightly bigger quantity and slowly ramp up the quantity released.

Any defects can be rectified on a smaller scale on the first batch as compared to a big scale full market recall. I first learnt of this "tactic" from a product unrelated to cameras. With D200 being out of stock almost immediately after its global launch, I suspect it's the same business model but i don't work in nikon so I cannot confirm.

[Wai]

Originally Posted by BreakThru Oh... does that means Nikon going to push out new products like Canon is doing? Perhaps we might start seeing new bodies and lenses every year instead of the usual 2-3 years one. If this is the case... think I won't *censor* when new product is out... learn from the eg of 20D & 30D.

Originally Posted by mpenza Nikon already started doing it for some of the recent DSLRs, e.g. D2Hs and D70s were released shortly after D2H and D70 with small improvements. Think it's a good trend, rather than bad. If u have the thinking that cameras are investment, u'll always be on the losing end.

exactly

The improvement from 20D -> 30D is much more than D70 -> D70s or D2h -> D2hs ....esp in terms of pricing

[BreakThru]

Originally Posted by mpenza Nikon already started doing it for some of the recent DSLRs, e.g. D2Hs and D70s were released shortly after D2H and D70 with small improvements. Think it's a good trend, rather than bad. If u have the thinking that cameras are investment, u'll always be on the losing end.

Investment?? only if the photographer consider it as a money making tool, eg full time and freelance photographers who charge for photography services.

What I meant is that less you are doing alright and wish to upgrade everytime a new product is launched, you perhaps should consider holding on to what you have and wait till the new model is out (which will be short in the future?). Currently, the new model with significant improvements is usually taking 2-3 years which makes new launches relatively worth to buy for you will see the price holding on tight for awhile.

You may not see it this way... perhaps you are one who can afford to chase after technology. I am definitely not one so lets say D300 or something may be out in a years time and I have a D70 now... I will hold on to it till next year and then upgrade. No end for me to chase after technology and not able too.

thats what I meant.

[shutterbug]

Originally Posted by yanyewkay relak..he didn't say nikon hold back stocks.. he said anyway, with the rise of the internet, some companies have a new and different approach to testing and bug discovery in case their alpha and beta testers missed it. There are only limited number of testers against the unlimited combinations of real life usage. That is to release an initial small quantity of products and monitor the internet community closely. If all is well they release a 2nd batch of slightly bigger quantity and slowly ramp up the quantity released. Any defects can be rectified on a smaller scale on the first batch as compared to a big scale full market recall. I first learnt of this "tactic" from a product unrelated to cameras. With D200 being out of stock almost immediately after its global launch, I suspect it's the same business model but i don't work in nikon so I cannot confirm.

From what I know Nikon do not employ such tactics. They are multi-billion dollar technological company with enough resources to conduct thier own test, and have a pool of talented professional photograher testers to test for them. It will be a public relation nightmare to do business this way. Only the cheap and unknown companies does it as you said.

As to why D200 is hard to find. It is because the marketing gurus at Nikon specified the units they want to sell, hence a specified fix amount is produced each month. D200 is unlike D70/s where 80,000 to 100,000 are produced every month. The figure is much lower, but more than D2x's approx 8,000 every month. D200 production figure is realistic as waiting time is about a month or so.

[Watcher]

Originally Posted by Wai exactly The improvement from 20D -> 30D is much more than D70 -> D70s or D2h -> D2hs ....esp in terms of pricing

Well, if you want to compare the improvements from D70 ->D70s or D2h -> D2Hs, then it is more like 1DMkII to 1DMkIIN. Model name + 1 symbol. As for 20D to 30D, if you take out the features that a D100 had what 4+ years ago (1/3 f/stop, spot metering and 9999 images per folder hich are deemed as the most significant features on 30D), there is no significant improvement...