Nikon stock woes, a giant slips


According to the financial news source Bloombergs, Nikon is seeing their stock values dip in value after they announced lower results in sales than they had initially projected. This is the largest loss of Nikon Corp.’s trading value on the Tokyo stock market since 1985. The origin of these lackluster results stems from a weak European market demand and lower enrty-level camera prices. The Nikon stock prices have lowered by 19% in the last few days to finish at 2139 Yen, the largest loss of value among the 225 businesses that compose the Nisei 225 index.

For the current accounting cycle which closes the end of March traditionally, Nikon should register a net result of 38 billion Yen the equivalent of 320 million Euros. While this appears on the surface to be an honorable result, it pales against the 60 billion Yens initially previewed. These new provisional results were announced by Nikon last week who also lamented the strong continual lower prices in entry level cameras. Nikon also said that it would need one or two quarters of activity to confirm or deny these trends, and to better it’s prices and profit margins. Nikon took advantage of the occasion to slightly lower its projected sales results by 100,000. to 7,1 million

DSLRs that the firm counted on selling this year. The number of lenses it projected to sell were lowered from 10 million to 9,2 million units. The digital compact figures were left intact at 17 million units.

The digital photo market is greatly touched by the effects of an anemic global economy, especially Europe’s. The CIPA reports that November saw a 14% decline of camera exports to Europe compared to the month before. A boycott by China of Japanese products also contributed to this tendency.

The ambitions of Nikon for a better spring quarter could very well be justified, because Nikon has renewed almost completely its d SLR camera product line. This huge project began last spring when it introduced the Nikon D 3200, its entry level DSLR with a 24 m.p. sensor, this after just having put on the market the new dSLR pro the Nikon D4 Then came a long awaited camera body the Nikon D800, with its full frame 36 m p sensor, who’s production was literally grabbed up the first few weeks on the market. Then Nikon launched the D600 , a relatively compact full format body, and less expensive than the D800, in any case more easily affordable for amateurs. Nikon seems to have been very preoccupied with the “advanced amateur” when they put the D5200 on the market (the D5200 test should be read when it comes out in the next few days on, replacing the D5100. It incorporates numerous features found on the expert digital camera, the D7000 in a body which is more entry level. We’re also attentively awaiting an eventual D7100 / D7200 in the next few weeks or months. In the digital compact with interchangeable lenses category Nikon has opted for a very “general public” product with a small sensor and a marketing plan of huge dimensions. Nikon has seen a renewed interest for its 24×36 Nikkor lenses with a large number of them updated and priced to make them more affordable, this applying also to the more pro-level lenses as well.

Canon on its side confirmed last month a 40% increase in its net results, according to Bloomberg. These heady results can be attributed to a devalued Yen and an increased demand for its more expensive models. Canon has also in its stead renewed considerably its d SLR product line in the last 12/18 months, with the introduction of the Canon EOS 5D Mark III, EOS-1D X, its EOS cinema family, the amateur digital reflex EOS 650D with its hybrid autofocus and finally its general public digital reflex Full Frame ; the Canon EOS 6D, with Wi-Fi and GPS, which we are testing right now with its very pro 24-70 mm lens.

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