Tough times at Olympus prompt SLR focus
By Michael R. Tomkins, The Imaging Resource
(Wednesday, November 9, 2005 - 09:32 EST)
Japan's Olympus Corp. has released its financial results for the half
year ending September 30th 2005.
Net income for the company as a whole was reported as ¥2.2 billion, a
whopping 67.7% below figures for the same period last year. The fall
was attributed to operating losses for the company's Imaging
division, which more than doubled to ¥6.7 billion, as the company
attempted to cut inventories and review its workforce levels.
According to company documents, total digital camera sales revenue
fell some 15.6% from year ago levels. Japanese domestic sales took
the hardest hit with a 20.9% drop, while overseas sales slid 14.9%.
Looking to improve the situation, the company is planning to
significantly change its overall product mix for the digital camera
market, which is currently dominated by compact models (72%), with
digital SLRs making up just 3% of sales, and other products the
remaining 25%. In three years, the company is forecasting 20% of its
digital camera sales to be DSLR models, with compact models
constituting 60%. Two years later, the mix is expected to be 30%
DSLR, and 40% compact models.
The company also noted that it would cease production of digital
music players, having faced strong competition from Apple and Sony in
that segment.
This is the same shift of emphasis announced by Nikon a year ago. No
profit in those handy little cameras. And I had no idea that Oly even
made a music player. Now that is bad marketing.
Winsor
Long Beach, California, USA
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