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Nikon Q1 financial results: net profit fell by almost 50%

Nikon announced their financial results for the first quarter of the year (ending March 2013). Here is the recap from Marketwatch:

  • Net profit fell 48.6% to 15.77 billion yen in this quarter
  • Sales increased 5.6% to 259.43 billion yen
  • Operating profit is down 36.7% to 23.37 billion yen
  • Nikon lowered  its earnings forecasts by 5 million yen for the 2013 fiscal year (ending March 2013)
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  • asdf

    Lol, how can they expect any profit when they pump out junk like J2.

    Seriously tho. Isn’t their D800 selling like hot cakes?

    • Sky

      Even if – it’s still a minority comparing to Nikon overall DSLR sales. So I doubt it got any noticeable influence on these results.

      • LeGO

        This partly explains Nikon refusal to publicly acknowledge the AF-issue on the D4 and D800/D800E. A class action suit against Nikon will hopefully teach Nikon an expensive-enough lesson on how to deal with this problem.

        • Rudi

          Sorry, what bullshit you are talking…

          • Big J

            +1

            • timon

              Nikon Q1 financial’s net profit problem is not with his camera sales number fell.

              problem is in 1. high cost of the Yen, 2. Precision Equipment and Instruments fell

              since while it pulled in a net profit of $201 million, that figure is down nearly 50 percent on the $392 million it made in the same period last year.
              It sold a record number of interchangeable-lens cameras, lenses and a good number of compact cameras, but that was offset against the high cost of the yen.

              Its other businesses, Precision Equipment and Instruments both suffered thanks to Government spending cuts, a “harsh business climate” and the now age-old problem of the high exchange rate. It’s expecting the situation to remain the same in the next three months, with booming camera sales weight against losses in its other businesses — with a projected profit of $143 million anticipated in Q3.

        • lawyers

          Yeah right let’s sue them and make sure they go bankrupted so the rest of the world will have to move on and buy Canon. By the way I wonder why the new 5d mark3 DROPPED to $2800USD and yet they still managed to make profit? (maybe from those who paid $3500 for it when it 1st came out?)

          • Jason

            where is 5d mk 3 selling for 2800?

            still 3499 at B&H

        • Ronan

          Like your username says, keep playing with your lego’s kiddo.

        • Jim

          do you own a D4 and/or a D800?

    • karl

      Sales are UP – people buy that “junk”.

    • RonaldW

      I can understand figures drop! launching an 800 in March still not available in The Netherlands (or you have to wait for a hugh amount of weeks). I’m already as far to buy the D5 in stead of the 800!

      • RonaldW

        Haha I’m normally so much into Nikon that I mixed up the Canon as a D5 instead of a 5D ;-)

        • eggzz

          - but you won’t.

          Because you that the D800 is a much better Camera.

          AND if you haven’t even decided on which brand yet, it means that you are a beginner, and then both the 5D and the D800 are over the top cameras for an unqualified user like yourself.

          Better start with a Coolpix which will suit your skills much better.

          • Sky

            Either a failed trolling attempt, or just clueless teenager trying to give advices?

            • umesh

              Give him a break. He did say he is so much into Nikon.
              I think it is sarcasm. Isn’t it RonaldW?

            • RonaldW

              No just waiting already for a long time to go to the 800 and get my beauty 700 a little rest. If Nikon gets her production in line with the market requests (volumes) the revenue will be raising faster then light. Also getting the 600 on stock shortly after anouncing it next september will help their figures. Another thing, not from my own experience yet, is the quality of the 800. As mentioned at several messages. Thats not the news buyers waiting for. And indeed it is just frustration, I’m not buying a D5 ;-)

        • Chris

          I order a D800 cancelled, they could not sell me one, I bought the Fuji X Pro1 and find the image quality is very good too, may be better.

          • Mark

            D800 and a Fuji X Pro1 are two very different types of cameras. If you want a full frame sensor then I am guessing you are still in the market somewhere in the future for a Nikon FX camera. It will be interesting if Nikon comes out with a D600 at least a few pennies under $2,000.00. I think that would be of interest to you.

    • Erpos

      And who knows how much Nikon have payed to Sony for using their sensor in the D800…
      Net profit have fell down for Nikon and it’s hard to believe that next years are going to be any more profitable. The only growing sector (and the overall future ) in the industry is mirror less cameras. And guess what? Nikon has nothing tempting in that area. Nikon 1 is a general joke, and compact cameras are going to destroy that system. RX100 has shown that already.

      Nikon really needs a big sensor mirrorless system if it wants to survive.

      • PixelBrine

        I just bought a D800 and would still snap up a well made mirrorless body by Nikon in a heartbeat. The 1 is a joke for serious use but I can see the weird gap it fills I guess.

        I want a Full Frame Mirrorless in a body resembling the new Olympus E-M5 or Pentax K1000 with an F mount and manual ISO and shutter speed dials. Put a 50mm or 35mm prime on it and I would take it everywhere with me. If they could offer that for under 2k they could take my money now.

        • Tomas

          Sony sensors with Nikon design of the read channels and AA filter : D100, D70, D70s, D50, D40, D200, D80, D40x, D60, D2x, D2xs, D300, D300s, D90, D60, D3000, D5000, D5100, D3x, D7000.

          Nikon developed sensors produced by another company, no Sony:
          D2h, D3, D3s, D700, D3100, D3200, J1, V1, D800, D800e, D4

    • JC

      Wow, that pricing fix worked out very well……

    • Mike

      How could it be selling like hotcakes when there wasn’t enough supply to meet the demand? Waiting lists for cameras in 2012….puhleease.

      • Josh

        Ummm the very fact that Nikon can’t make them fast enough to keep it in stock means it is selling very very well. The only way Nikon could meet the high initial demand is by adding workers and equipment. Which would be really stupid to do because in 6 months to a year that unusually high demand will be over and they will just have lay off the new workers and the equipment will just gather dust.

  • FrenchGuy

    Dear Mr Nikon,

    Release the D400 and I will help you to grow in your business!!

    • nuno santacana

      +1 and same for D600 and a big-sensor mirrorless (like Fuji xPro-1)

      • Big J

        That Fuji xPro-1 is pretty damn sweet. Although people are gonna hate saying it’s a wannabe Leica -.- but I used to own long a ago a very similar looking rangefinder camera with b&w film in it and shot pretty damn nice. Although I dig the fact it’s far cheaper than one.

        • Chris

          To increase their sale, should make sometime extra ordinary, like a Nikon S3 digital rangfinder, I will full support them, the worst thing is they cannot match with their production. I was not happy that they cannot sell me a D800 after waiting for a long time, so I cancelled it and buy a Fuji X Pro1. They lost another $3000 on sale.

        • Mike

          Why would they hate saying it’s “wannabe Leica?” It IS a wannabe Leica. Just like the SP was. Nothing wrong with that. Japan has always prided itself on tweaking existing designs rather than true innovation.

    • LeGO

      With software becoming an even more essential part of the camera, software bugs in new models is to be expected. How the manufacturer handles this when these rears its ugly heads will be of crucial importance. Nikon’s refusal to even recognize this problem merits Nikon a failed grade.

      Nikon can’t enough get the D4/D800/D800E AF-issue straightened out, even those already sent back to Nikon Service Center once, twice and even thrice. It is unlikely that the D400 will be coming out anytime soon. But should Nikon release the D400, it will likely have even more problems given that there is even less quality control on lower-priced models.

      My D3s, D700, D7000 and D3100 were trouble-free but Nikon taught me a good lesson I will not forget anytime soon. My AF-challenged D800E will be my last camera body purchase from Nikon for a long time. D4 purchase cancelled permanently.

      • Bojan

        When I pay 2000€+ for a camera I don’t want any bugs.
        Thanks.

        • Rudi

          And? What do you expect when buying a $50.000 car? No bugs? I guess you don’t have a clue of anything.

        • Tern

          Canon has pioneered the concept of firmware bugs in DSLRs. The 5D2 had about 20 firmware fixes in its life. The 5D3 has 3 now and it’s only 6mth old.

        • Ickis

          That expectation is unrealistic, because cameras sold for such prices are too complicated to be bug free.

          There’s a constant race between software & electronics complexity and the efficiency of QC & QA. The later lag behind, and there’s no lack of bugs in most such products.

          E.g. every Intel processor has bugs, some listed by Intel in the errata sections of the processors’ documentation, some not. Usually people don’t notice, because software developers find workarounds, but sometimes – such as the FDIV bug case – Intel has to replace the processors at great expense.

      • doorman

        My D90 and D7000 had a (well known) backfocus, both were adjusted by a Nikon service point. QC ?

      • eggzz

        we all know that the focus issue has already been fixed on models leaving the factory now.

        Just because you cant afford a D4, you dont have to write all this BS in here!!

        And if you cannot take great photos with the D4, you are a miserable amateur.

        My D800 works fine. I ordered it in July. Problem fixed and btw was only present in a small percentage of the cameras shipped.

        Unbelievable amount of crap I have to read about this “problem” from armchair-photogs and wannabes.

        • eggzinthehead

          eggzz … go along and shoot with your D80 while pretending that it is a D800. If you work hard enough, you may just be able to buy a D90 in 5 years from now and pretend that it is the D900.

          • eggzz

            did I hit on your weak spot ?

            You’re just a sad Canon owner trying to stir things up because you cant afford the gear that you dont know how to use.

            “focus-issue” my *SS

        • Bob

          Eggzz- There are still a lot of reports of D800s being recieved with faulty AF. I forget who said it first that shipments after 7/1 would be problem free- but that was just a hypothesis, with no credible support. With all this attention to the D800, I am realizing how true it is that people will believe what they want.

      • Big J

        If you’re steering towards the “Canon is superior line” then you’ve got another thing coming. Nikon has publicly announced that fix for it already and IS fixing. Canon (for example) in some of their 5D Mark II models had focusing issues and even though it was being sent in to get fixed, NOTHING could be done about it they said. So I prefer Nikon fixing stuff with firmware updates and updated service centers rather than getting a “We’re Terribly Sorry” from Canon’s department.

        If you already have 2 full frame cameras like you said, D3s and D700 then why the fuck are you bitching? Those are some amazing cameras! Or do you like bragging about FOTY? (Also the other cameras aren’t bad either).

  • http://photo.marktim.ru/ krikman

    Nikon Imaging products sales alone grew by 20%.

    So Nikon digicam sales well.

  • cdrross

    Just wondering being that the sales are up if all the problems they have been having with their focus issues (warranty repair costs) on the D4, D800 and the D7000 are finally starting to take their toll.
    Shame – just make it right the first time.

    • eggzz

      this is THE most braindead comment in here so far today !!

      Why aren’t you out shooting some pictures ??

      Because you don’t even own a camera I guess….

      do you seriously think a “focus-issue” with a small percentage of 2 camera-models can be seen in a financial result from the same quarter that the cameras was released in ???

      My D800 has no “focus-issue” at all….. Gee, the Canon-employees are really at work these days !! But couldn’t they hire some people with just a little brains ??

      • Sdnd

        If your D800 works fine, why aren’t you out shooting pics, instead of posting nasty remarks !

        Did Nikon email to you about ” focus issue with a small percentage of cameras” ? Or did you simply make this up ?

        Troll or Nikon shill ?

  • Delie

    Here’s a plan:
    1. Release D400
    2. Release D600
    3. Release DX sized mirrorless camera (e.g. X-Pro 1 / NEX)
    4. Release M43 sized compact (fixed single lens, e.g. RX100). At the same time scrap the j1/v1.
    5. Admit focussing issues
    6. For R&D, get busy prototyping a FF mirrorless, you’ll need it ready in about 2-3 years time – that’s where the market’s heading so be warned.

    Problem solved.

    That wasn’t too hard :)

    • metsatsu

      Problem solved by simply admitting the AF issue? You’re too naive bro

  • Banksie

    A big problem for Japanese companies is that the yen is over valued. That cuts into profits. With exports the margins get very narrow. Right now it’s 82.00 ¥ to 1.00 US dollar.

    • PAG

      Banksie, you’re talking to people who think that a focus issue on the D800 is the reason profits are down. Good luck teaching them the basics of finance for an international company.

      • JorPet

        When you consider that these numbers only run through June 30, 2012 which was before the focus issues with the D800 were widely known. In fact very few D800 had made it into the wild by the time these accounting numbers were finalized.

    • david distefano

      78.4 yen to the dollar

      • Banksie

        78¥ is the current rate, thanks for the correction (I hadn’t updated my currency calculator since March.) Nonetheless, the point remains the same. Currency values affect the bottom line for exporting manufacturers. (And add the costs that Nikon has incurred with the interruptions of its production and supply lines.)

        Exchange rates are also one of the reasons why Toyota and Honda makes their best selling cars for the US market (Accord and Camry) in the United States. And why in 2012 Toyota is sending the US made Camry to other markets, too (such as South Korea.)

        • david distefano

          and with the fed manipulating the dollars value it makes it very difficult for exporters to the u s to forecast out profit based on sales

  • Catch Jarvis

    Release:
    FX
    20mm f/2.8 AF-S and keep it small
    70-200mm f4
    300mm f4 VR
    120-300mm f4
    35mm f1.8 AF-S

    DX
    14mm f2.8
    23mm f1.8

    CX
    UWA lens
    2x fast primes
    100-200mm f4 (270-540mm )

  • Josh

    Wow I love the hysterics about the much over hyped AF issue. Only a very small number of camera’s have the issue. I know a few people on the internet with an agenda like to make it seem other wise but if the issue was as wide spread as some seem the think and promote there would be a much bigger backlash and cameras would be being returned in droves. Instead you have two groups of people the majority who never have a problem and so don’t go on the internet to complain and who Don’t even realize there is an “issue” and the very very small minority that do have a problem and scream the complaints all over the internet as loud as possible. Included in the latter group is the ones who think they have a problem but don’t.

    My guess is Nikon has at least a ruff idea of how many D800’s have the problem and it is such a small number that having a recall would only serve to have many many people who’s cameras are fine send them in to be “fixed”. The biggest issue about the D800 AF is that most people simply don’t understand how their AF works. I don’t mean what button to press or what settings in the menu to choose. I mean how the AF sensors technically function and the tolerances involved. Without this knowledge most have an unrealistic idea of how accurate AF should be with different lenses and apertures. Especially when they perceive that they have a”pro” AF and think it should be perfect and able handle almost anything.

    The more complex and precise the AF and the worse this problem becomes. This is why when Nikon put the much more complex 39 point AF in an affordable camera so many complained about back focusing instead just using the AF micro adjust.

    • eggzz

      +1000 !!

      The crap that people are writing about the “focus-issue” is UNBELIEVABLE !!

      probably no cameras leaving the factory now even has that problem anymore.

      My D800 is from july, and I cant find any problems at all. It’s a wonderfull piece of equipment. no less.

      • Mike

        How do you know it’s from July? It only has a serial number, not a date stamp.

    • Maji

      Great post. I don’t understand the hype about this AF issue. I am sure some bodies have that problem and Nikon is definitely not doing a good job of communicating. However, this the sky is falling attitude makes me wonder if these are real photographers or just people with cameras who just peer down to the pixels or at worst, trolls.

      • david distefano

        my d800 has the af issue. but so what. i will get it fixed. it is only on wide angle lens and there are ways to work around it. if you want to make a great image the af issue will not stop you from making it unless you are inept at your craft.

    • Mira

      It’s a good point, Josh, except that it’s not.

      Nikon doesn’t discuss the technicalities of how their autofocus systems work. They don’t discuss error tolerances, either. So how would a user really know what to expect? (How do *you* know what the specific error tolerances are?)

      As far as I can tell, Nikon creates expectation using promotional material and also using their camera instruction manuals. The promotional material shows perfection. And no Nikon manual I’ve ever read delves into technicality–in fact, I don’t even recall even seeing terms like “phase detect” or “contrast detect,” which might at least toss users a bone about some detail. No, the manuals offer, at best, “straw man” practical examples of use cases or potential problems (e.g. the lion at the zoo behind bars, warning you not to focus on the bars!)

      If you ask me, one of Nikon’s biggest problems is that they leave so much of their “message” open to speculation (by self-anointed “experts” like yourself) or to third-party “power users” like Thom Hogan and Ken Rockwell. Nikon doesn’t tell you how their products work; Thom Hogan does. Or “Josh” in the Nikon Rumors forum does.

      Forget quality control: that’s the single biggest problem with Nikon autofocus systems, if you ask me.

      mira

      • Josh

        LOL the fact is there is a lot of available information about how PDAF works if you want to read it. My point was most people dont even realize that there are tolerances involved at all. They just think that the AF will be accurate all the time with all lenses at all focal lengths at all apertures and with all AF targets and this is just not possible. To them AF is magic that should just work no matter what they are asking it to do. For example if you don’t know if the point you are using is a vertical, horizontal, or cross type and what the differnce is, you have no idea what you should aim it at to get the best chance of an accurate focus.

        Despite your rambling about essentially nothing, the fact remains the vast majority of D800s have no focus problems at all .

        • Mira

          “The fact remains the vast majority of D800s have no focus problems at all.”

          How do you know that?

          I’m serious, expert Josh. How do you really know that for a fact?

          And about all that random information on “how autofocus systems work” on the web: how do you know it’s an accurate description? All the stuff I’ve seen was written by speculative blowhards. The only example I’d spare from that category is the series written by Roger Ciccala over on the Lensrentals.com blog–and I spare it because he began the series with a hearty disclaimer:

          http://www.lensrentals.com/blog/2010/07/how-autofocus-often-works

          Note the title: “How Autofocus *often* works.” Humility’s good when you really aren’t sure.

          Anywho, I think you’re just speculating based on your interpretation of whatever internet chatter you’ve been able to find. Maybe you have a D800 that works; though, honestly, how would anyone even really trust that? Why should anyone think you have particular insight into any of this? You’re just “Josh,” you’re not a Nikon engineer. You aren’t even Joe McNally or Chase Jarvis–someone who can put portfolio behind his or her thoughts on how the gear should work. (Which, by the way, is my biggest problem with guys like Thom Hogan, Ken Rockwell, and Lloyd Chambers: they talk with authority and then present poor portfolios!)

          I don’t mean this to be mean, I’m just tired of reading deeply speculative junk written as though it were authoritative fact. You aren’t an authority just because you say you are. (Or, to rephrase: “Shooting Jesse James doesn’t make you Jesse James.”) At least Hogan has the results of his recent survey to back his thoughts. What’ve you got beyond “I think mine’s good and I believe I’m using it right?”

          If that’s all, then I suggest you reconsider your “authoritative” tone, young man.

          mira

          • Josh

            The only one with an figurative tone is you. YOU claim you know better than me. YOU assume what I have read on AF. YOU assume YOU know which info on AF is valid and which isn’t. YOU claim that I can’t know the majority of D800s don’t have the problem when even a cursory look at the the number of reports and who is making all the noise and the number of D800s sold proves it beyond a doubt. YOU are the one with a superiority complex that has to come here and act like you know better than me while at the same time your whole argument boils down to “you’re wrong because I say so.”

            I am done with you.

            • Josh

              The first line of my last post should read:

              The only one with the authoritative tone is you

    • Sdnd

      You are getting equally hysterical trying to defend Nikon ! We know there are AF issues with some/many bodies – no one except ( or including ) Nikon knows how many units are affected. So please stop writing essays on how only few cameras are affected ! You have no idea at all !

      • Josh

        lol The small number of reports only showing up on forums and blogs where interested people go to complain and talk about such things is all the indication you need that the number effected cameras is very low. You have to realize that thousands of D800’s have been sold and most the internet noise about AF problems comes from people discussing it and a shrill minority who saw in opportunity to let out their feelings about how much Nikon sucks. The number of actual, verified (as in sent the camera to Nikon and they said there was a problem and fixed it) reports is quite low.

    • jorge

      My D800 DOES INDEED have the left focus problem. I received it mid-June. Am I worried? Nope. Mid-July I shot a destination wedding in Puerto Rico with the D800, and my D700. Shot for 20 hours over three days, 5800 images and NOT ONE was out of focus — as I worked around the left focus issue by stopping down, or NOT USING IT. No big deal. I have already contacted Nikon in Melville NY and in the next couple of weeks I have another shoot out at the tip of Long Island. On the way back home (Jersey) I plan on dropping the D800 off in person, with proven samples I’ve taken, for them to repair. I’m hoping (they say they MIGHT be able to accomodate me) to wait while it gets done. So, is there an issue in a limited number of bodies? YES. Is it something to freak out about? NO! Will Nikon fix it? YES. Do I worry about it? Not at all. I know the limitations of this left area of the viewfinder and I just avoid it if I can, or stop down when I can’t. Problem (temporarily) solved.

  • john stevens

    This is because of the Earthquake and Flooding in Thailand. They took a major hit, and now feeling the effects of Mother Nature. It was expected.

  • Marc

    well, there is no statement that Nikon fixed the focus issue of the D800; just the fact there are are plenty cameras out there is enough to hurt Nikons reputation, and the way they handle this matter;

    • Josh

      There is no statement that Nikon fixed it because on balance there is no problem. The number of impacted cameras is so tiny that a statement would only serve to unnecessarily hurt Nikon’s rep even more. It is better to just fix the few cameras that come in. I would bet that the number D800s with out of tolerance or barely in tolerance AF sensors is only slightly higher than it is with any new camera release and the whole thing is just being blown out of proportion on the internet. The only “issue” is that Nikon’s tolerances might have been just a little too lose for the first production run and have probably been tightened up since then.

      I find the number of people who sent in their cameras for repair that had their cameras returned to them by Nikon with out any fix because Nikon couldn’t find a problem with the AF very telling.

  • d3c

    Acts of Nature caused delay but they did not cause some very knowing people to forget how phase detection AF systems function.

    When first reported I wondered as most would. Then I noticed authors of these claims change the distance, change the target, change the lens, change the precepts, and in the end measure by subjective means. Not a single scientific test performed exposing any problem with measured results. Where are those that typically perform such tests on such a topic?

    Basically I can just as easily believe that no D800 model cameras were systematically produced with an AF issue as they were produced with such an issue based on the evidence provided.

    • Josh

      My guess is the “issue” is just that Nikon had the tolerances for the first run of D800s set a little loose and have now tightened them up. This would explain the small number of cameras with problems and the varying degrees of severity of the focusing problems in the small number of cameras that do have them.

    • umesh

      It is not so. My D800 I tested when I bought it. No problems found. When left point issue was heard I tested in detail every possibe way and found left most 2 points to be faulty. One shoot had problems also. I am managing for time being . The people who are bickering have most probably never worked in adverse conditions or made to do anything hard way. I will take my cam to nikon when possible and I am sure that they will correct the problem .

      • Sdnd

        “I tested when I bought it. No problems found.”

        “When left point issue was heard…….”I tested…. and found left most 2 points to be faulty”

        Does what you “hear” from others affect your testing ?

  • wALTER

    PLease people, learn to read :)
    The results are over Q1.
    As the D800 is released on 22 march (the same day i got 1 :p) these results will only be avaiable in Q2

    • JorPet

      Did you read that Nikon’s fiscal year runs April 1 – March 31st? So these numbers run through June 30th (their end of first quarter). Not all companies run their fiscal calendar on the actual calendar.

  • Pablo Ricasso

    Forgive them lord for they know not what they are doing. Please tell them how to focus a wide angle lens…

  • trialcritic

    I see that people are griping too much about the D800. First D800 was available for sale in end of march, so it will not be part of their Q1 sales. The biggest reasons for the reduction are the high cost of yen and a harsh business climate in Japan.

  • Ben

    From http://bcnranking.jp/news/1207/120724_23322.html:In DSLR category:
    1. Canon @ 59.8%
    2. Nikon @ 28.8%
    In MILC category:
    1. Olympus @ 30.7%
    2. Panasonic @ 29.6%
    In compact camera category:
    1. Canon @ 16.2%
    2. Sony @ 15.4% Could the sales figures for the first 6 months of 2012 explain the problem?

  • Mark

    I am not shocked or worried (I own some Nikon stock). The earthquake in Japan and the flooding in Thailand are still affecting Nikon (and a number of other companies. These events have reduced the profit margin.

    Considering the large scale of these events, Nikon looks great. Still turning a profit, sales are up so people want the products, and they are now getting back on track so profit margin in time should improve. Also, the news posted on Nikon Rumors of, “The Coolpix S800 will be the first Android based camera from Nikon,” should attract some buyers to Nikon.

    I may just have to buy some more Nikon stock.

    Mark

  • http://www.andygural.com Andy

    Nikon as whole is not the same thing as Nikon cameras, people.

    Profits are down even though they are selling more cameras. Now why could that be? Oh, have they had to rebuild plants in several cities after the Godzilla attack in Japan and then the flooding in Thailand? It wasn’t free to recapitalize all that equipment.

    Jeez.

    • Mark

      Great point Andy. Given all that has happened (oh yeah, there is a bad economy still out there), Nikon is doing damn good.

      Mark

  • Jack

    Does anyone remember that Nikon effectively raised the prices on all their lens and cameras last year by threatening to cut off sellers that offer Nikon products below sticker pricing. Raise prices in a tough economy and see your profits fall big-time.

    • Mark

      Jack,

      I do not agree with that being the drop in profit margin. The report states sales have increased which is remarkable given the production setbacks. So profit has been lost having to make huge production adjustments.

      Price have gone up in general in photography. I am most bothered that a basic base model DSLRs (and to a degree base model mirrorless cameras) have gone up in price. I think by now there needs to be some base model camera to get more people into photography.

      This opinion is based on the fact that I teach photo and for most students the camera has become a difficult investment.

      My 2 cents.

      Mark

      • http://www.andygural.com Andy

        The D80 and D90 are still amongst the most popular Nikons on Flickr. Tell your students to pick up those. These are capable cameras.

        http://www.flickr.com/cameras/nikon/

        • Mark

          Andy,

          I advise on all the best purchases that are out there, and funny you mention the D90. I sold my D90 to a former student.

          What is still needed is a good basic DSLR camera body that sells consistently for less than $500. Hell, I think the big camera makers could do it for $399. The profit would be thinner but they would make up for it in other sales. For example, price point be lower could increase the number of cameras sold, such a model camera could be popular to nerds like us as a 2nd camera body (back-up camera). Also, if a brand (ie Nikon) got more people owning one if its DSLRs then it could gain sales in other items, like lenses, flashes, grips, camera bags, tripods, filters, camera straps, memory cards, and many other items.

  • arizonaSteve

    Canon and Nikon are both in trouble in regards to point and press cameras. They are being supplanted by cell phone cameras. I bought my wife a Canon G12, and she barely uses it because she always has the camera on the very serviceable iphone 4s. When we want really nice picts we grab my D700.

    I wonder if this android camera is going to be a bridge from cameras to other consumer electronics (that require optics or not).

    • Mark

      arizonaSteve,

      You make a great point about cell phone cameras and the impact they are are having on the point & shoot cameras sales. This new Nikon which is Android based will help but Nikon needs to team up with someone in the smartphone market, either Google with their Android line or Apple and the iPhone are the big two options.

  • Joel

    For those listing back-focussing issues or poor handling of user complaints as a factor for the lowered forecast, I ask you this. Did you idiots even LOOK at the sales figures??? Digital imaging is up by a long way on last year – most likely due to huge sales of D800s, D4s and 1’s. Its the precision instrument division (such as microscopy) that has taken the hit and lowered the profit.

    F*** me there are some morons trolling around.. If you clowns want to remain intentionally ignorant even when evidence is clearly presented to you, stay well off the internet and stop wasting peoples’ time.

  • Chris McGathey

    way to raise your prices on everything Nikon, and this is financial news is supposed to be surprising, how about making some items that are affordable I am not talking about consumer dslr’s how about some affordable glass. jesus it’s not rocket science. In this economy people just can’t afford it anymore.

    • Mark

      Chris,

      That goes hand in hand with my earlier statement about an affordable DSLR to get people into the product line. There has been a new 50mm f/1.8G that was far affordable than the 50mm f/1.4G but then again it is more than the previous 50mm 1.8D Nikkor.

      Anyway, you make a good point, at least a handful of key lenses that are more reasonable in price, perhaps a a few zooms and primes that cover the most basic needs/interests in photography.

  • Serves them right

    They started jacking up prices worldwide after the Thailand floods…

    sorry Nikon, you deserve that one and the D800 release was a total failure (canceled deliveries and supply shortage)

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