Pentax：digital cameras
・ This segment features a very hard-fought struggle compared with the same term last
year. The effects of exchange rates were relatively minor until the 2Q and POS demand
varies from country to country. However, in France for example, it declined suddenly in
August, while the same happened in Germany slightly earlier and likewise in the U.S., it
declined in July and August. According to the monthly shipment statistics issued by the
CIPA, until September they were riding on the crest of a wave and shipping of newly
manufactured items continued relatively briskly one after the other, but around summer,
in-store sales clearly started slowing down with lost momentum, as seen in the
year-on-year increases of 15% or 20% they had enjoyed up to then. Our sales also
decreased significantly on a year-on-year basis, with accumulated stocks and
production and marketing carried out while keeping the market conditions in mind.
Another factor was price; there was a significant drop in unit prices. The decline in the
unit prices of compact digital cameras had a particularly grave impact, given the advent
of a new low-end product at 79 dollars finally realized. This unit price decline was
damaging to us, in terms of both sales and profits.
・ Essentially, the products we are now producing and selling were developed last
summer or autumn, with a roadmap that lacked strategy in my view. As I said in the
previous meeting, we remade a completely new roadmap for the next fiscal year in
accordance with the "scrap & build" policy: creating unique cameras of a new and
different field, and releasing and commencing the marketing of interchangeable lenses
at the same time as new cameras. As for new products for this year, a new single-lens
reflex camera K-m model (an entry level high-end model) was launched about two
weeks ago, while new compact digital cameras have also been released on a quarterly
basis. Next year, we are planning to launch some three types, including minor design
change versions, of single-lens reflex (SLR) cameras. With a desire to offer cameras
which will demonstrate our advantages, as announced in the Photokina held in
Germany, we will relaunch ourselves next year as a manufacturer of all-weather
cameras which are strong outdoors, highly water-resistnat, splash-proof, and dustproof,
small and light, easily portable and tough (durable).
