Nikon firing nearly 10% of photo staff and shutting down DSLR lens / compact plant

beholder3 · 11-01-2017, 01:04 AM

Interesting:
Nikon Closes Camera Factory in China, Blames Rise of Smartphones

Firing about 10% of your overall photo business staff is quite a move, if not unexpected. It's more than twice the amount of staff they already fired a couple of months ago.

While Nikon marketing would like to concentrate the media discussion on "the smartphones are guilty", that plant was producing Nikon DSLR lenses just as much. Obviously those are not selling ok as well.

It also is interesting that with better products than Nikon Canon was able to actually grow +13% (current quarter) their compact camera sales. So it is neither "the market" or "the smartphones" who damage sales figures any longer, it just is poor product development which is to blame. No G9X Mark II, no RX100 from Nikon.

D1N0 · 11-01-2017, 02:05 AM

Or they will just move the lens production to a different factory. I believe only cheap kit lenses were made there. Nikon's main production facilities are in Thailand and Laos.

Adam · 11-01-2017, 02:22 AM

Nikon really needs to stop the sharp decline in their core business (DSLRs). If they don't, Pentax could eventually creep ahead for the value it offers, overshadowed by Canon's dominance of the segment.

Per CIPA, the ILC and compact digital camera market has grown so far in 2017 compared to 2016, so I agree, you can't really blame the market as it looks like we're seeing a recovery from the massive dropoff from 2014 to 2016.

Furthermore, DSLR sales remain mostly steady despite the 40+% boom of mirrorless in most regions.

beholder3 · 11-01-2017, 02:29 AM

Originally posted by D1N0

Or they will just move the lens production to a different factory.

Think again. What you said would only be possible if they had half a factory elsewhere sitting idle until now. Which is 100% the same disaster and would tell the same story about lack of product appeal to the market.

However you look at it, Nikon seems to have a major lens sales problem.

Originally posted by D1N0

I believe only cheap kit lenses were made there.

Source?
I believe only top end lenses were made there.

D1N0 · 11-01-2017, 02:33 AM - **2 Likes**

I believe you rejoice by the demise of Nikon and will believe anything that confirms it.

**Rondec** · 11-01-2017, 02:47 AM - **1 Like**

It's a concerning development. To me, Nikon is the brand that probably is closest to Pentax in philosophy -- nice SLRs (maybe too many tiers but still), high quality sensors with excellent base iso performance, and gear that tends to test better than Canon gear. What is certainly clear is that DXO Mark sensor tests don't sell (many) camera bodies and overall, Sony and Canon are eating Nikon's lunch.

Is this an opportunity for Pentax? Probably not, as they are more limited in what they offer than Nikon and are also tied very closely to traditional SLRs.

beholder3 · 11-01-2017, 03:07 AM

Originally posted by D1N0

I believe you rejoice by the demise of Nikon and will believe anything that confirms it.

So if you run out of excuses and arguments you attack the person stating an opinion? *facepalm*

You still owe us a source to your claim on lens types produced. Liars and fanboys don't need sources or arguments. The others do.

D1N0 · 11-01-2017, 03:43 AM

Just google it Beholder and it is you who is attacking the person.

biz-engineer · 11-01-2017, 04:36 AM

Originally posted by D1N0

Just google it Beholder and it is you who is attacking the person.

Agreed.

---------- Post added 01-11-17 at 12:44 ----------

Originally posted by Rondec

Sony and Canon are eating Nikon's lunch

It seems that Canon gained some market share at the expense of Nikon. Some attribute that to some quality issues on the D750, but I'm not sure how this is the primary cause. I've also heard some issues with Canon cameras but usually Canon users don't make it a big deal because Canon quickly replaces / repair camera so that quality issues are less visible. I'd rather attribute Nikon difficulty to combined action of market slowing down and Canon nearly perfect commercial deployment, rather than features and performances of the camera and lenses themselves.

Not a Number · 11-01-2017, 05:27 AM

Oh noes! Nikon is Doooomed! Which means Pentax is Doooomed!®

BTW:
Nikon cutting 10% of its work force - PentaxForums.com

Blue · 11-01-2017, 06:18 AM

I don't want to see the demise of Nikon. That said, I don't get broken up over a factory closing in China.

KiloHotelphoto · 11-01-2017, 08:31 AM

Originally posted by beholder3

Originally posted by D1N0
I believe only cheap kit lenses were made there.
Source?
I believe only top end lenses were made there.

Source on top end lens factory?

Ontarian50 · 11-01-2017, 08:40 AM

I don't think we can deny that most camera companies are faced with overcapacity in their production plants, no matter where they are.

Then there's the fact that many DSLR owners are more than a little horrified to see the "Made in China" decal on their new, highly rated lens. Nikon, for instance, has their 50mm 1.4G and brilliant 105mm 1.4E made in China.

Is this downsizing merely an opportunity to bring such production back to Japan, so guys like Ken Rockwell can't sniff about the pedigree of a lens that costs north of two grand?

And wouldn't we all welcome the notion that our high-priced camera jewels are no longer being made in Chinese branch plants?

normhead · 11-01-2017, 08:47 AM

Originally posted by KiloHotelphoto

Source on top end lens factory?

+1... I'm not interested in opinions, just the facts. 10% work force lay off and one factory closed what is presented. While I'm happy to learn about what the factory made blah, blah blah, I'd appreciate if sources were included.

It's impossible to know entirely what's going on at Nikon. It could be better or worse than we think. I'm not giving credence to any arguments one way or the other without proof.

But, at a glance, this is bad for Nikon. It means they've either created too much capacity or are losing market share so fast they need to cut staff and close manufacturing facilities. Clearly, that means less product to sell, and less possibility for growth.

When you have multiple indicators, loss of staff and production facilities, that is a bad sign, no matter how you cut it.

Personally, coming from a family where I was the only Pentax shooter, and my sister shot Olympus, and my mom shot Nikon I don't really care one way or the other. If Nikon does well, good for them, if they go under, it will be like losing an old casual acquaintance. We weren't close enough I'd go to the funeral.

Jeff Lopez · 11-01-2017, 09:00 AM

The facts are these..
The yuan is taking force and Chinese labor wages are going up..Actually, it only costs 4% more to produce in the USA, (CNNMoney report).
The key word is Thailand, it points to probably all consumer grade electronics will shift manufacturing to South Asian countries..
Where are those DAL lenses made?

11-01-2017, 01:04 AM	#1
beholder3 Pentaxian Join Date: Dec 2011 Posts: 3,112	Nikon firing nearly 10% of photo staff and shutting down DSLR lens / compact plant Interesting: Nikon Closes Camera Factory in China, Blames Rise of Smartphones Firing about 10% of your overall photo business staff is quite a move, if not unexpected. It's more than twice the amount of staff they already fired a couple of months ago. While Nikon marketing would like to concentrate the media discussion on "the smartphones are guilty", that plant was producing Nikon DSLR lenses just as much. Obviously those are not selling ok as well. It also is interesting that with better products than Nikon Canon was able to actually grow +13% (current quarter) their compact camera sales. So it is neither "the market" or "the smartphones" who damage sales figures any longer, it just is poor product development which is to blame. No G9X Mark II, no RX100 from Nikon.

11-01-2017, 02:22 AM	#3
Adam Administrator Site Webmaster Join Date: Sep 2006 Location: Arizona Photos: Gallery \| Albums Posts: 51,595	Nikon really needs to stop the sharp decline in their core business (DSLRs). If they don't, Pentax could eventually creep ahead for the value it offers, overshadowed by Canon's dominance of the segment. Per CIPA, the ILC and compact digital camera market has grown so far in 2017 compared to 2016, so I agree, you can't really blame the market as it looks like we're seeing a recovery from the massive dropoff from 2014 to 2016. Furthermore, DSLR sales remain mostly steady despite the 40+% boom of mirrorless in most regions. Adam PentaxForums.com Webmaster (Site Usage Guide \| Site Help \| My Photography) PentaxForums.com server and development costs are user-supported. You can help cover these costs by donating or purchasing one of our Pentax eBooks. Or, buy your photo gear from our affiliates, Adorama, B&H Photo, KEH, or Topaz Labs, and get FREE Marketplace access - click here to see how! Trusted Pentax retailers:

11-01-2017, 08:47 AM	#14
normhead Pentaxian Join Date: Jun 2007 Location: Near Algonquin Park Photos: Gallery \| Albums Posts: 40,451	Originally posted by KiloHotelphoto Source on top end lens factory? +1... I'm not interested in opinions, just the facts. 10% work force lay off and one factory closed what is presented. While I'm happy to learn about what the factory made blah, blah blah, I'd appreciate if sources were included. It's impossible to know entirely what's going on at Nikon. It could be better or worse than we think. I'm not giving credence to any arguments one way or the other without proof. But, at a glance, this is bad for Nikon. It means they've either created too much capacity or are losing market share so fast they need to cut staff and close manufacturing facilities. Clearly, that means less product to sell, and less possibility for growth. When you have multiple indicators, loss of staff and production facilities, that is a bad sign, no matter how you cut it. Personally, coming from a family where I was the only Pentax shooter, and my sister shot Olympus, and my mom shot Nikon I don't really care one way or the other. If Nikon does well, good for them, if they go under, it will be like losing an old casual acquaintance. We weren't close enough I'd go to the funeral. Last edited by normhead; 11-01-2017 at 09:22 AM.

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11-01-2017, 02:05 AM	#2
D1N0 Pentaxian Join Date: May 2012 Location: --- Photos: Gallery Posts: 6,802	Or they will just move the lens production to a different factory. I believe only cheap kit lenses were made there. Nikon's main production facilities are in Thailand and Laos.

11-01-2017, 02:29 AM	#4
beholder3 Pentaxian Join Date: Dec 2011 Posts: 3,112 Original Poster	Originally posted by D1N0 Or they will just move the lens production to a different factory. Think again. What you said would only be possible if they had half a factory elsewhere sitting idle until now. Which is 100% the same disaster and would tell the same story about lack of product appeal to the market. However you look at it, Nikon seems to have a major lens sales problem. Originally posted by D1N0 I believe only cheap kit lenses were made there. Source? I believe only top end lenses were made there.

11-01-2017, 02:33 AM - 2 Likes	#5
D1N0 Pentaxian Join Date: May 2012 Location: --- Photos: Gallery Posts: 6,802	I believe you rejoice by the demise of Nikon and will believe anything that confirms it.

11-01-2017, 02:47 AM - 1 Like	#6
Rondec Loyal Site Supporter Join Date: Mar 2009 Location: Gladys, Virginia Photos: Gallery Posts: 27,653	It's a concerning development. To me, Nikon is the brand that probably is closest to Pentax in philosophy -- nice SLRs (maybe too many tiers but still), high quality sensors with excellent base iso performance, and gear that tends to test better than Canon gear. What is certainly clear is that DXO Mark sensor tests don't sell (many) camera bodies and overall, Sony and Canon are eating Nikon's lunch. Is this an opportunity for Pentax? Probably not, as they are more limited in what they offer than Nikon and are also tied very closely to traditional SLRs.

11-01-2017, 03:07 AM	#7
beholder3 Pentaxian Join Date: Dec 2011 Posts: 3,112 Original Poster	Originally posted by D1N0 I believe you rejoice by the demise of Nikon and will believe anything that confirms it. So if you run out of excuses and arguments you attack the person stating an opinion? facepalm You still owe us a source to your claim on lens types produced. Liars and fanboys don't need sources or arguments. The others do.

11-01-2017, 03:43 AM	#8
D1N0 Pentaxian Join Date: May 2012 Location: --- Photos: Gallery Posts: 6,802	Just google it Beholder and it is you who is attacking the person.

11-01-2017, 04:36 AM	#9
biz-engineer Pentaxian Join Date: Feb 2015 Photos: Gallery Posts: 12,232	Originally posted by D1N0 Just google it Beholder and it is you who is attacking the person. Agreed. ---------- Post added 01-11-17 at 12:44 ---------- Originally posted by Rondec Sony and Canon are eating Nikon's lunch It seems that Canon gained some market share at the expense of Nikon. Some attribute that to some quality issues on the D750, but I'm not sure how this is the primary cause. I've also heard some issues with Canon cameras but usually Canon users don't make it a big deal because Canon quickly replaces / repair camera so that quality issues are less visible. I'd rather attribute Nikon difficulty to combined action of market slowing down and Canon nearly perfect commercial deployment, rather than features and performances of the camera and lenses themselves.

11-01-2017, 05:27 AM	#10
Not a Number Moderator Join Date: Mar 2012 Location: Venice, CA Posts: 10,526	Oh noes! Nikon is Doooomed! Which means Pentax is Doooomed!® BTW: Nikon cutting 10% of its work force - PentaxForums.com

11-01-2017, 06:18 AM	#11
Blue Moderator Site Supporter Join Date: Jun 2008 Location: Florida Hill Country Photos: Gallery \| Albums Posts: 17,377	I don't want to see the demise of Nikon. That said, I don't get broken up over a factory closing in China.

11-01-2017, 08:31 AM	#12
KiloHotelphoto Pentaxian Join Date: Jan 2015 Location: Glen Mills, PA Photos: Albums Posts: 1,030	Originally posted by beholder3 Originally posted by D1N0 I believe only cheap kit lenses were made there. Source? I believe only top end lenses were made there. Source on top end lens factory?

11-01-2017, 08:40 AM	#13
Ontarian50 Veteran Member Join Date: Mar 2015 Posts: 530	I don't think we can deny that most camera companies are faced with overcapacity in their production plants, no matter where they are. Then there's the fact that many DSLR owners are more than a little horrified to see the "Made in China" decal on their new, highly rated lens. Nikon, for instance, has their 50mm 1.4G and brilliant 105mm 1.4E made in China. Is this downsizing merely an opportunity to bring such production back to Japan, so guys like Ken Rockwell can't sniff about the pedigree of a lens that costs north of two grand? And wouldn't we all welcome the notion that our high-priced camera jewels are no longer being made in Chinese branch plants?

11-01-2017, 09:00 AM	#15
Jeff Lopez Veteran Member Join Date: Dec 2016 Posts: 531	The facts are these.. The yuan is taking force and Chinese labor wages are going up..Actually, it only costs 4% more to produce in the USA, (CNNMoney report). The key word is Thailand, it points to probably all consumer grade electronics will shift manufacturing to South Asian countries.. Where are those DAL lenses made?