Smartphones make camera makers' business increasingly obsolete - analysts

By IVCPOST Staff Reporter

Aug 14, 2013 10:12 AM EDT

Nowadays, the camera makers' business suffers from a decline in sales. The once-core enterprise of compact digital cameras are increasingly obsolete due to smartphones. 

According to the International Data Corporation, a research firm, the combined worldwide sales of Canon and Nikon in 2012 was 44% of all the cameras sold. The cameras made up 40% of Canon's revenue. Canon's sale of compact cameras during the second quarter was down by 26% from last year. On the other hand, the cameras of Nikon accounted for 78% of its revenue. Its sales were down by 30% during 2013's second quarter.

The stocks of both Canon and Nikon have been hit hard. Canon's share lost around a tenth of its value in 2013. Subsequently, Nikon's share value was down by over a third. Analysts said that the camera makers would get hurt more if the industry would respond to the lower-than-anticipated sales of high-tech cameras by reducing prices and slashing margins. Also, if shipment for high-end compact cameras continue to fall, a decrease in the stock prices could be expected.

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