Nikon in 'Dire Straits' as its Slump is Particularly Untimely: Report
This past year has not been kind to any camera manufacturer, but Nikon is reportedly in "dire straits" as it had yet to financially recover from previous
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This past year has not been kind to any camera manufacturer, but Nikon is reportedly in “dire straits” as it had yet to financially recover from previous business decisions even before it was hit with the worst slump in camera sales in years thanks to the proliferation of COVID-19.
According to Japanese publication Tokyo Keizaiand summarized by Digicame-Info, “the prestigious Nikon is in dire straights” thanks to the deterioration of the main camera business. In the video business, which includes cameras, sales for the coming financial quarter are expected to decrease by around 40% from the previous term to 140 billion yen (~$1,338,809,640), leaving the company with an operating deficit of 45 billion yen (~$430,331,670).
The most common scapegoat for poor camera sales, the growth of the smartphone market, is not entirely to blame here. Tokyo Keizai says that Nikon’s fear of conflicting with its DSLR camera sales made the company reluctant to produce a mirrorless camera. By the time it entered the market, Sony had long since entrenched itself. In 2019, Sony produced 1.65 million units, while Nikon had only produced 280,000. Canon similarly waited to enter the market but has fared much better with strong sales of the EOS R5 capping a couple of years of what is proving to be a better mirrorless strategy.