Nikon says digital SLR cameras beating plan
By Nathan Layne and Kunihiko Kichise
Wed Jul 5, 7:16 AM ET
TOKYO (Reuters) - Japan's Nikon Corp. (7731.T) boosted shipments of digital SLR cameras by about 35 percent year-on-year in April and May, putting it on track to beat its annual estimate, the head of its camera unit said on Wednesday.
Nikon is the world's second-largest maker of digital single lens reflex (SLR) cameras after Canon Inc. (7751.T). Digital SLRs are generally more expensive and have more advanced features than point-and-shoot compact models, and use interchangeable lenses.
Senior Managing Director Makoto Kimura told Reuters in an interview that Nikon's factory in Thailand, which produces the popular D50, D70s and D200 digital SLR models, was running at full tilt to meet robust demand.
"Conditions for all three models are very tight worldwide. We can sell as many as we can produce," Kimura said.
Kimura said its performance in April and May had put the firm on track to exceed its forecast for digital SLR shipments to rise 30.6 percent to 1.75 million units this financial year to March. That forecast was unveiled with its earnings in May.
"We estimated growth of about 30 percent, but we are now moving at a pace that would allow us to beat that," he said.
Boosting sales of digital SLR cameras is an important task for Nikon as it continues to face stiff competition in compact models, which are much easier to produce and under intense pricing pressure due to an influx of low-cost makers.
Cameras account for more than half of Nikon's group sales, with most of the rest coming from chip-making equipment.
Competition is expected to get tougher with Sony Corp. (6758.T) and Matsushita Electric Industrial Co. (6752.T) due to launch their first digital SLR models later this month, and Kimura said he was not taking its new rivals lightly.
"I consider them both to be a threat. They may not have a big impact in the short term of one or two years, but from a long-term perspective of three to five years we will have to watch very closely the kind of products they bring to market."
MARKET REVIVAL
Kimura said he expected the global digital SLR market, which also includes Pentax Corp. (7750.T) and Olympus Corp. (7733.T), to expand by about 25 percent to 5 million units in 2006. A company spokeswoman later clarified that Kimura was referring to the current financial year to March 2007.
Canon held a 53.3 percent share in the global digital SLR market in 2005, followed by Nikon with 28.3 percent, according to research firm IDC. Including compacts, Canon was top with a 17.2 percent share and Nikon fifth-largest at 9.3 percent.
Canon really started pulling away from the pack in September 2003 when it launched the EOS Kiss Digital, the first digital SLR priced as low as around $1,000, which proved low enough to achieve mass-market appeal.
Nikon followed six months later with the D70, the predecessor to the D70s, at a similar price. Prices have been sliding since and Nikon's cheapest digital SLR, the D50, now sells for about $700 on Best Buy Co.'s (NYSE:BBY - news) Web site.
Kimura said he expected prices of the cheapest digital SLRs in the industry to fall to $500 within the next two years and then move toward $300.
"In the film era there were mass-market SLR models selling at $300. So there are people out there that want to take pictures with a SLR that costs about that much. I don't know when it will happen, but the next target after $500 is the $300 mark."
Demand for non-SLR cameras has also been strong recently, with industry-wide shipments rising 22 percent to 26.3 million units in the January-May period, according to the Camera and Imaging Products Association, which tracks Japanese makers.
Kimura attributed the surge in demand to an increase in cameras that have vibration reduction technology and other features that help users take better shots that would not be possible on a camera-equipped mobile phone.
"Makers are offering cameras that allow for really good picture taking. That is driving replacement demand," he said.
Despite the robust market conditions, Kimura stuck by Nikon's forecast for shipments of compact cameras to hold flat at 7.1 million units in 2006/07. "We are not going to try to overdo it when it comes to compacts and will proceed as planned."
Shares of Nikon closed down 0.5 percent at 2,040 yen, compared with a drop of 0.73 percent in the benchmark Nikkei average
DSLRUsers.com
A discussion forum - and more - for users of Digital Single Lens Reflex cameras.
Nikon says digital SLR cameras beating planModerator: Moderators
Forum rules
Please ensure that you have a meaningful location included in your profile. Please refer to the FAQ for details of what "meaningful" is.
Previous topic • Next topic
16 posts
• Page 1 of 1
Nikon says digital SLR cameras beating plan
Nikon D300, Nikkors 70-200 VR, 17-55, 50 1.4,18-200 VR etc
Not surprise me at all! You'll see the D200 well below AU$2K soon (by Xmas 06) as I have been told (from Nikon Official sources) at the beginning of June. Birddog114
VNAF, My Beloved Country and Airspace
Are you ready? and I'm serious  Last edited by birddog114 on Thu Jul 06, 2006 9:44 pm, edited 1 time in total.
Birddog114
VNAF, My Beloved Country and Airspace
Given that 2 years ago F50 kits - with a lens - were selling at retail in Teds for around Au$350, this is not surprising. We're still paying the penalty of the new technology used by DSLRs, hence the prices are currently still higher than I think they should be. g.
Gary Stark Nikon, Canon, Bronica .... stuff The people who want English to be the official language of the United States are uncomfortable with their leaders being fluent in it - US Pres. Bartlet
Correct! in the next few years, DSLR will be similar pricing with the film camera. D2Xs pricing is very attractive in comparison with D2x once it was first released and it carries a nice price tag than the previously D1 series. Birddog114
VNAF, My Beloved Country and Airspace
I'm serious too  I just have to convince the minister for finance.Way to much photography gear is never enough!
Now time to start picking up 20cent coins around and save them up for the D200  
Further, yes.  g.
Gary Stark Nikon, Canon, Bronica .... stuff The people who want English to be the official language of the United States are uncomfortable with their leaders being fluent in it - US Pres. Bartlet
Is that after I push the little old ladies over? Way to much photography gear is never enough!
I'd rather Nikon push the technology, then pull the price.
FF, increase DR, fps.... and upgrade some of their old prime lenses. Andrew
Canon make photocopiers and stick lenses on them....
I'm saying they are doing both to make them competitive with the future market. Birddog114
VNAF, My Beloved Country and Airspace
Pls. do it now! and get ready when the special deal appear on this board. It won't be far away and stock is not last very long also. Birddog114
VNAF, My Beloved Country and Airspace
Previous topic • Next topic
16 posts
• Page 1 of 1
|
- Mods Database • The team • Delete all board cookies • Reset blocks • All times are UTC + 10 hours [ DST ]
