Nikon Financial Update from thom

[anubis]

Nikon Financial Update
DSLRs have shown surprising sales strength in 2006, and Nikon is riding the wave. Nikon is now reporting that it believe it will sell 2m DSLRs in the current fiscal year (previous estimate was 1.75m, so the estimate has gone up 14%). This represents a staggering 49% increase in units over the previous fiscal year, and appears to be well above the overall market growth rate. Nikon estimates their market share in DSLRs for the year to be 40% (2m units of 5m overall; I estimate a higher overall market total and thus a lower market share, more like 35%). Lens unit volume is also up, though not by nearly as much (closer to a 10% increase, and much of that will come in the second half of the fiscal year, which ends March 31, 2007).

Meanwhile Coolpix sales have gotten, well, cool. Last fiscal year Nikon sold 7.1m units and this year they're now forecasting 6.5m units (down from an earlier forecast of 7.1m units). The average unit revenue from these models is down, too.

Overall, both sales and profits are up in the Imaging Products division for the first half of the year, though not dramatically. This is expected to hold through the end of the fiscal year. Imaging Product R&D expenses are up almost 19% for the first half of the year (no forecast for these forward to the end of the fiscal year).

Probably the most interesting part of the presentation for visitors of this site was Nikon's analysis of how various parts of the Imaging business are changing in overall value relative to one another. Here's what they look like for last and this year:

2006 2007
DSLR 30% 43%
Lenses 15% 18%
Coolpix 48% 33%
Film SLR & Other 7% 6%

Bottom line: DSLR sales good, Coolpix not so. What Nikon proposes to do to fix the slowing Coolpix sales is unclear (emphasizing face recognition and WiFi don't seem to be any different than the current strategy, which isn't working). May I make a suggestion? Make a truly distinguished product. The current models are rather pedestrian and me-too.

[blacknstormy]

May I make a suggestion? Make a truly distinguished product.

I think that quote goes for ALL of the Nikon stable, and also perhaps actually start listening to and caring about those of us that use Nikon.

Gary's posts started a bit of an avalanche regarding Nikon service, and I think it is time that someone over there started listening !!!!

Thanks for the update

[sirhc55]

Nikon will listen to the masses when little Johny tells the truth - not in my lifetime

[Steffen]

Nikon's current strategy seems to be: if we can't corner the P&S market we'll kill it off with low-end DSLRs. Who knows, with models like the D40 this might just work...

Cheers
Steffen.

[seeto.centric]

hahah im sure they will... maybe we should print off the thread and mail it to them or email them the link?
or even better, mail it to head office in Japan...

-julz