Smartphones challenge Japanese camera makers

By IVCPOST Staff Reporter

Sep 23, 2013 08:53 AM EDT

The popularity of smartphones has shaken sales of Japanese camera makers Nikon and Canon. According to a Bloomberg report, smartphones had replaced point-and-shoot compact cameras that comprised the majority of market offerings of both companies. Now, even the sales of Nikon and Canon's higher end single-lens reflex cameras, had also began to slow down. Nikon had already slashed down the prices of its cameras to respond to the growing smartphone sales.

Morgan Stanley MUFG Securities said it expected a reduction in camera shipments this year by 30%. Nikon had already said it had already cut production so it would remain profitable.

Canon, however, said it did not intend to reduce prices just to go after short-term market share gains. The world's number one camera maker experienced a 19% drop in sales for the second quarter this year. The volume sales of its compact cameras also dropped 26% from April to June this year compared to the same period last year. In July, Canon said its sales continued to drop even as it introduced new products like the PowerShot SX280 HS. With its high-magnification zoom lens, the capability of the PowerShot SX280 was purportedly better than that offered by smartphones.

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