Nikon profits down 41%

[Franglais]

Nikon's quarterly financial results are out and they aren't good. But it's probably the same for everybody. Profit is down by 41% but at least there still is a profit.

Nikon | Investor Relations | Financial Results and Presentation Materials

Point-and-shoot sales are down, optical stepper sales are sluggish (used to make computer chips), and DSLR sales are also sluggish.

One bright spot is the D7100 which sold well (I bought one).

Anybody want to speculate on future products?

- It's rumoured that Nikon is working on a smartphone (smartphones are causing the low-end camera market to collapse)
- Was it a good idea to bring out the high-value get-people-to-buy-a-second-camera (the DF)?
- Or should Nikon have taken a risk with a lower-value DSLR (D300, D700 replacement) that might have sold more but would probably have taken sales from the higher bodies?

[volks]

I think a d400 would have done better than the DF camera will do.
Just my opinion. Also, I think it's way too late for Nikon to compete in the smartphone arena. It will be a waste of time and money if they do. The market is flooded with Nikon's and Canon's. The only way to increase sales in that arena is for them to bring out cameras that are capable of taking much better quality photos for the masses, the ones that always have their cameras set on auto or scene.

[OldClicker]

The article Volks referenced in the DF thread suggests some possible routes for the future of Nikon. He, of course, makes some assumptions.

Mirrorless vs DSLR

Terry

[Franglais]

I don't believe that article.

All the mirrorless manufacturers are losing money. I don't think that Nikon and Canon are going to leave a profitable DSLR market for an unprofitable mirrorless one.

I have the impression that the manufacturers want to move upmarket because the customers want a "real" camera. See the "pure photography" DF, the D7100 that was mentioned as being a success. It gives them a real avantage over smartphones in terms of image quality.

[OldClicker]

I don't believe that article.

All the mirrorless manufacturers are losing money. I don't think that Nikon and Canon are going to leave a profitable DSLR market for an unprofitable mirrorless one.

I have the impression that the manufacturers want to move upmarket because the customers want a "real" camera. See the "pure photography" DF, the D7100 that was mentioned as being a success. It gives them a real avantage over smartphones in terms of image quality.

You are defining 'mirrorless' (both for IQ and profitability) as the current crop of small sensor cameras. Neither has anything to do with the mirror. The Sony A7R currently has IQ as good as, or better than, any DSLR and I think the profit margin is quite good. We will have to wait for the sales volume data.

Canikon have convinced many that a 'real' camera requires a mirror flopping around between each exposure. You seem to see this as a benefit. I see it as their downfall because they now need to make a choice - continue to market the myth and watch sales bleed away over the years or turn 180 and tell their current fans that they were wrong which will really pi$$ them off. Sony is still seeing the latter from the old Minoltians who detest the idea that Sony is going against everything they hold a sacred. I see the DF as the first of what DSLR will become - nostalgic.

Terry

[Franglais]

This is the guy I believe - Kimio Maki from Sony. (Sorry it's from another site but I found it very interesting). I don't see Canon and Nikon DSLR's going out of business but I do expect someone clever to come up with a real low-end camera in a smartphone i.e. with image quality and zoom. And I don't think it will be cheap.

'Every six months I want to do something new' Kimio Maki of Sony: Digital Photography Review

I saw some of the Minolta fans on the Sony stand at the Paris Photo event last week. They were anxiously examining the adapter for the A7 that allows them to put the Alpha lenses on the A7 (and gives the right flange distance). Stress..

[Beasty]

Nikon's quarterly financial results are out and they aren't good. But it's probably the same for everybody. Profit is down by 41% but at least there still is a profit.

Point-and-shoot sales are down, optical stepper sales are sluggish (used to make computer chips), and DSLR sales are also sluggish.

One bright spot is the D7100 which sold well (I bought one).

Anybody want to speculate on future products?

- It's rumoured that Nikon is working on a smartphone (smartphones are causing the low-end camera market to collapse)
- Was it a good idea to bring out the high-value get-people-to-buy-a-second-camera (the DF)?
- Or should Nikon have taken a risk with a lower-value DSLR (D300, D700 replacement) that might have sold more but would probably have taken sales from the higher bodies?

Isn't Nikon already doing this? I saw some pics on Nikon Rumors of smartphones with Nikon modules and expeed processors.

[Franglais]

Some comments on the situation on the Nikon web site:

Nikon | Investor Relations | Q&A of Financial Results for Second Quarter of the Year Ending March 31, 2014

Reduce the number of models, go from older models to newer ones with more profit, potential for DSLR growth in China.. It could mean anything.

Do they not produce the D400 because it's an extra model or do they produce it because they can make a profit on it? Or not - the latest Pentax is all that the D400 could be and it's relatively cheap.

[bitflogger]

The Wall St. Journal reported on the state of camera sales about a week ago. Problems are not a Nikon problem as much as cel phone problem. I get it because Nikon's AW1 looks more interesting to me than spend money on my SLR system for better video shooting and travel.

[weihong]

Looks like everyone is taking pic with iPhone

[volks]

On our last outing down the Pacific coast, I saw several times some folks taking pictures with their rather large iPads. I kept my thoughts on how they looked to myself.

[Greg McCary]

The D800 sales were very good and I think the DF is also going to do well. Just how many millions of cameras do you have to sell to turn a profit? Over head in the camera industry must be really high.