|
| Author | Thread |
|
|
07/07/2005 11:01:54 AM · #1 |
Canon, Nikon Bet on Professional Cameras for Profits
2005-07-07 04:09 (New York)
By Aiko Wakao
July 7 (Bloomberg) -- Canon Inc. and Nikon Corp. plan to
increase production of single-lens reflex digital cameras,
betting consumer demand for equipment used by professional
photographers will make up for a slump in cheaper models.
Canon said sales of its digital SLR cameras, which use an
interchangeable lens to capture and electronically store images
on a computer chip, will account for more than a third of all
digital camera revenue this year, from 21 percent two years ago.
The two companies control 80 percent of the global single-lens
reflex market.
``Profit margins for high-end digital cameras are better
than for compacts because a smaller number of competitors mean
prices are fairly stable,'' Tomonori Iwashita, Canon's executive
in charge of photographic products, said in a recent interview.
Operating profit margins for Canon's single-lens reflex
models are about three times more than for compact digital
cameras, according to analysts. Earnings growth for compact
digital cameras, which generally provide lower resolution, has
slowed in an overcrowded market where Canon and Nikon vie for
sales with Sony Corp. and Olympus Corp. Four of the top five
digital camera makers in the world are Japanese.
Shares of Tokyo-based Canon, which makes the EOS brand of
single-lens reflex cameras, have risen 7.6 percent this year,
more than double the 2.7 percent gain in the benchmark Topix
index. Nikon has fallen 3.3 percent, partly because of price
declines in semiconductor-making equipment, the company's other
main business. Cameras and lenses accounted for 55 percent of
Nikon's sales last year and semiconductors made up 33 percent.
Canon's shares rose 0.7 percent to 5,950 yen as of 3 p.m.
on the Tokyo Stock Exchange today, while Nikon's stock fell 0.6
percent to 1,224 yen.
Helping Earnings
The companies' dominance in digital single-lens reflex
cameras, a small but growing part of their business, may help
lift earnings, said investor Taiji Yoshida.
Single-lens reflex units are different from compact models
because they use the same lens for viewing and shooting, and
have interchangeable lenses
``The digital SLR market is the makers' last card, and they
have to make the most of it before the market matures,'' said
Yoshida, who helps manage $6.1 billion at Yasuda Asset
Management Co. in Tokyo. ``People want to take good quality
photos easily, and the entry-level models are targeting that.''
Both Canon and Nikon are increasing shipments of single-
lens reflex cameras priced around $1,000 to meet demand from
amateurs, who are looking for sharper images, longer battery
life and less shutter delay when taking pictures.
SLR Shipments
Canon expects shipments of single-lens reflex models to
rise 38 percent this year to 1.8 million units, outpacing the 20
percent growth expected for all its digital cameras. Nikon
expects a 50 percent increase in shipments of the models to 1.6
million units this fiscal year, compared with 15 percent growth
of its overall digital camera shipments.
Global shipments of all digital cameras made by Japanese
companies totaled 1.5 trillion yen ($13.5 billion) in 2004,
according to the Tokyo-based Camera & Imaging Products
Association.
``The SLR market is a two-player battle,'' said Hisashi
Moriyama, an analyst at JPMorgan & Chase Co. in Tokyo. ``Profit
margins won't fall unless one company decides to set off price
competition, which will sacrifice profitability.''
For Canon's single-lens reflex unit alone, operating profit
margin may climb to 35.4 percent this year, from 31.7 percent a
year earlier, according to Moriyama. The margin for compact
models is expected to drop to 10.1 percent from 17.6 percent, he
said.
Small Part
Nikon's operating profit margin for single-lens reflex
cameras will rise to 26.1 percent in the year ending March 31
from 21.9 percent a year ago, Moriyama said. That compares with
an expected loss margin of its digital compact models of 5.3
percent this year and 6.6 percent last year, he said.
Even so, the size of the companies' shipments of the more
expensive cameras is small compared with the total figure.
Canon's shipments of compact digital cameras, including the
PowerShot model, will reach 16.8 million units this year. Nikon,
which makes the Coolpix series, expects digital camera shipments
of 7.6 million units.
Canon, which earns about half of its sales from copiers and
printers, estimates profit at its camera unit will fall 4.7
percent to 124.7 billion yen in the year ending Dec. 31. Cameras
account for about 16 percent of the company's total sales.
Beating Forecast
Nikon forecasts its camera business to exceed the annual
operating profit target of 20 billion yen, or about 60 percent
of its group operating profit, for the fiscal year ending March
2006 as it introduces more expensive models and slashes
inventory.
Operating profit is sales minus the cost of goods sold and
administrative expenses.
Canon introduced its entry-level model two years ago, the 6-
megapixel Canon EOS 300D, which was marketed in the U.S. as the
EOS Digital Rebel. The camera was priced just below $1,000,
about the same price for Nikon's D70, also a 6-megapixel device.
More expensive single-lens reflex models are available,
including Canon's EOS-1D, which has a retail price of about 1
million yen, and Nikon's D2X at 450,000 yen, according to
Japanese online shopping portal kakaku.com.
The digital single-lens reflex models from Canon and Nikon
can also use interchangeable lenses designed for the companies'
older film cameras.
`Yet to Grow'
``The SLR market will continue growing for 2 to 3 years,''
Makoto Kimura, managing director for Nikon's imaging products
business, said on June 23. ``SLR shipments are expected at a
little more than 4 million units this year, and I think it has
room to grow into a 6, or even 8, million unit market.''
Shipments of lenses used in single-lens reflex cameras by
Japanese makers are expected to gain 16 percent to 6.2 million
units this year, according to the Camera & Imaging Products
Association. The industry group doesn't provide camera shipment
figures for the camera bodies alone.
Compact digital camera shipment growth, in contrast, will
slow to 20 percent from 37 percent a year earlier, it said.
``The SLR market is more closed than the compacts because
it requires more advanced technology,'' said Canon's Iwashita.
``It's a market that's yet to grow.'' |
|
|
|
07/07/2005 11:38:24 AM · #2 |
Sony are you listening?!
This for me is the one company that has the means to take this from a two-player game to a three player game. They certainly have the manufacuring capacity. They have the financial muscle. They cover the whole range of digicams right up to prosumer. Let's not forget that they were the ones who really set off this sub-1000 dollar battle with the DSC-707. With Carl Zeiss making lenses, optics is very well taken care of. If only they can gain control of and revive the Contax brand, that you realy give Canon and Nikon something to think about! |
|
|
|
07/07/2005 11:46:00 AM · #3 |
Firstly: The Zeiss lenses on sony digicams are a bloody joke. And secondly: Even if Sony started coming up with dSLR cameras, nobody would bother to take them seriously.
Message edited by author 2005-07-07 11:46:23. |
|
|
|
07/07/2005 11:57:36 AM · #4 |
Originally posted by Uusilehto:
Firstly: The Zeiss lenses on sony digicams are a bloody joke. And secondly: Even if Sony started coming up with dSLR cameras, nobody would bother to take them seriously. |
I dont consider a lens that made this possible:
to be any kind of joke. Granted, those lenses they are currently geared towards the prosumer market, but the point I am making is that the partnership and the capability already exist, all that is left is the will. Secondly, have you ever heard of Contax? If that brand is not taken seriously, then nothing is. Besides, there are already Zeiss lenses made for Contax. Kyocera had a gold mine on its hands and messed up. With the right focus and the right marketing, Sony is in a position to make a success of it. (If only they would) |
|
|
|
07/07/2005 12:13:47 PM · #5 |
I think if the companies acheive their goals boosting sales of SLR's, in a couple years you will see a growth in fixed lens slr cameras at a lower consumer price. Most consumers don't have a $1000 to spend on an SLR camera just to get higher resolution, nor does the average consumer understand lenses. Try telling the average consumer about 75-300 mm lenses and so forth. Their heads will spin. Average consumer wants 10x zoom in their camera so they can "zoom" in on the subject. Also, SLR cameras are more complex, in the respects of aperture and shutter settings. I doubt consumers are going to jump on the SLR wagon for better automatic settings.
I see the reasoning for the companies to push the SLR cameras due to profit margin, but convincing consumers so shell out a lot more money for something they do not understand will be difficult. Also, I'm not sure how camera shops are in your area, but around here, even the sales people don't know anything about SLR. Seriously. When I bought my xt, the sales guy was trying to sell me a point and shoot because it has this "super cool movie feature". I only bought my camera from there because they were the closest place, but I really did not want to give those idiots my business. |
|
|
|
07/07/2005 12:19:20 PM · #6 |
Originally posted by wadap0:
I dont consider a lens that made this possible:
to be any kind of joke. |
The lens had very little to do with the quality of that shot because it's heavily sharpened. Don't get me wrong, it's a superb shot, and JJ is an excellent photographer, but the shot doesn't speak for or against Zeiss lenses..
|
|
|
|
07/07/2005 12:29:56 PM · #7 |
As a former Contax RTS 35mm camera owner with all Carl Zeiss lenses, I can say their optics are superb, or at least were some time back. The 50mm f1.2 prime was a dream to own. I highy doubt they make lousy optics to this day, regardless of what camera brands they may contract out to.
Just a counterpoint 0.02ยข opinion.
|
|
|
|
07/07/2005 12:32:35 PM · #8 |
| I'm waiting for Minolta to really get their act together. I chose the 7D over Canon and Nikon, and don't regret my choice one bit. When Minolta release a 5D and/or a 9D and get their act together with new lenses, they'll be back where they should be amongst Nikon and Canon. Traditionally Minolta have always been up there and have only fallen behind in the digital SLR race. |
|
|
|
07/07/2005 12:42:19 PM · #9 |
Originally posted by BradP:
The 50mm f1.2 prime was a dream to own. I highy doubt they make lousy optics to this day, regardless of what camera brands they may contract out to. |
I don't think you can compare a fixed f/1.2 50mm to a 7.1x consumer zoom lens (in the case of the Sony 828), regardless of the manufacturer..
|
|
|
|
07/07/2005 12:58:28 PM · #10 |
| I think it's safe to say that all of the German manufacturers of lenses (Zeiss, Leica and Schneider) make wonderful products, but why haven't they geared their production to more of the digital SLR market. |
|
|
|
07/07/2005 01:06:46 PM · #11 |
Originally posted by wadap0:
Sony are you listening?!...
.....With Carl Zeiss making lenses, optics is very well taken care of. ... |
Sony provides the sensors that are used in Nikon (except the D2h), Pentax, Epson (RD-1) and Konica Minolta dSLR's and rangefinders. If they enter the dSLR market they would loose all those sales (because I'd expect that the manufacturers would switch to Panasonic (Canon 1D sensor), Fujifilm or Kodak or they would for a large part compete with themselves.
Entering the dSLR market as a newcomer (no SLR background) can be very risky and therefore very expensive. Contax is a dead brand, it doesn't have a good name for a digital innovator.
The Zeiss link is not ideal for dSLR's because full frame Zeiss optics are freaking expensive. Excellent, but expensive. Those are Pro-Pro lenses and Sony as a body manufacturer will not easily be regarded as Pro. When Zeiss would decide to build a much cheaper line they run the risk of getting a less good name (bad is not the right word). Besides that, the current Sony Zeiss optics are mostly based on Zeiss lens coatings. Some Sony's share their lenses with Canon and other brand cameras. Because of Zeiss coatings it can use the Zeiss name (+ some money).
|
|
|
|
07/07/2005 01:14:06 PM · #12 |
Originally posted by Azrifel:
Originally posted by wadap0:
Sony are you listening?!...
.....With Carl Zeiss making lenses, optics is very well taken care of. ... |
Sony provides the sensors that are used in Nikon (except the D2h), Pentax, Epson (RD-1) and Konica Minolta dSLR's and rangefinders. If they enter the dSLR market they would loose all those sales (because I'd expect that the manufacturers would switch to Panasonic (Canon 1D sensor), Fujifilm or Kodak or they would for a large part compete with themselves.
Entering the dSLR market as a newcomer (no SLR background) can be very risky and therefore very expensive. Contax is a dead brand, it doesn't have a good name for a digital innovator.
The Zeiss link is not ideal for dSLR's because full frame Zeiss optics are freaking expensive. Excellent, but expensive. Those are Pro-Pro lenses and Sony as a body manufacturer will not easily be regarded as Pro. When Zeiss would decide to build a much cheaper line they run the risk of getting a less good name (bad is not the right word). Besides that, the current Sony Zeiss optics are mostly based on Zeiss lens coatings. Some Sony's share their lenses with Canon and other brand cameras. Because of Zeiss coatings it can use the Zeiss name (+ some money). |
Umm.. nevermind. lol
Message edited by author 2005-07-07 13:14:23.
|
|
|
|
07/07/2005 01:19:41 PM · #13 |
why doesnt sony just get smart about things and make their new line of DSLR's with the canon EF SERIES MOUNT ;)
|
|
|
|
07/07/2005 02:08:37 PM · #14 |
I've been pretty happy with the results from my Panasonic FZ20, except I'd much prefer to use an SLR body with true manual focus, rather than electronic manual focus. The Leica lens is superb quality, and the zoom's great! Having the anti-shake is also very useful.
I've played with a few different Canon EOS's to get a feel for them, which I enjoy, but I've now got the dilemma of do I upgrade to a Canon now, or wait and see what quality the dSLR Panasonic is coming out with next year is like? And does the anti-shake technology in lenses for the Canon match that of the FZ20?
Choices choices...
Message edited by author 2005-07-07 14:14:00.
|
|
|
|
Current Server Time: 04/27/2024 12:50:40 AM  |
Home -
Challenges -
Community -
League -
Photos -
Cameras -
Lenses -
Learn -
Prints! -
Help -
Terms of Use -
Privacy -
Top ^
DPChallenge, and website content and design, Copyright © 2001-2024 Challenging Technologies, LLC.
All digital photo copyrights belong to the photographers and may not be used without permission.
Current Server Time: 04/27/2024 12:50:40 AM EDT.
|
