Comparing full years Nikon is joining the party of losers (same as Sony and Canon before):
- profits down -27% (from 30 bln yen to 22 bln yen)
- sales -18%
Nikon | Investor Relations | Financial Results and Presentation Materials
The loss of profitability looks better than Canon's and Sony's but Sony's -73% profit plunge figures were more focused on last quarter compared to last quarter the year before.
They are already preparing investors for further drops in profitabilities (the forecast for next year is 12 bln yen, so a
further plunge of -45%):
"In the Imaging Products Business, given the rapid advances in surrounding technological environments
and increasing sophistication and diversification of digital cameras, continual investment is required for the
development of new technologies and new products. There is, however, a possibility of a decrease in profit
in the event that investment does not produce adequate results to fail to develop or bring to market new
products or next-generation technology in a timely manner or there is an abrupt shift in demand to higher
functioning digital equipment. In addition, should a competitor acquire a patent on a new technology, there
is a danger that the production and/or sale of a product will be suspended or of a decrease in profit margin
due to the payment of royalty, which may impact profit."
The good news they state:
"As for digital cameras, which are the leading products of the Imaging Products Business, there is a possibility that
competitors will launch an offensive with low-priced products as the market matures."