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Nikon says brisk digital camera sales to lift profits

March 31st, 2006

Nikon says brisk digital camera sales to lift profits
Channel NewsAsia

TOKYO : Japan’s Nikon said that rising sales of high-end digital cameras were expected to boost its operating profits by 70 percent over the next three years.
Nikon, which has decided to stop selling most of its film cameras in favour of hot-selling digital models, said it would invest 265 billion yen (2.25 billion dollars) over the same period to strengthen its core business.

Under its three-year business plan, the company is aiming to post operating profit of 90 billion yen, current profit of 80 billion and revenue of 900 billion by the fiscal year to March 31 2009.

“The new business plan should allow us to enhance our leadership position in the high-end single-lens reflex (SLR) digital cameras market, while permitting us to grow even in a highly competitive market,” president Michio Kariya said Wednesday.

In the current year Nikon, which also makes ‘steppers’, or etching machines used in the production of semiconductors, expects operating profit of 53 billion yen, current profit of 34 billion and revenue of 710 billion.

To enhance its position in the SLR digital camera and stepper markets, Nikon said it will spend some 165 billion yen on research and development alone to speed up the development of new products.

Nikon aims to boost its share of the SLR digital camera market to 42 percent by the third year of its business plan, from 32 percent now, Kariya said.

Nikon, along with Japanese rival Canon, is increasingly focusing on high-end digital SLR cameras which are more profitable than cheaper digital compacts where competition is fierce and demand peaking.

The Camera and Imaging Products Association of Japan sees low-end compact digital camera demand rising just four percent in 2006.

However shipments of high-end SLR digital cameras are seen expanding 23.4 percent this year. – AFP/de

Entry Filed under: World Digital Camera