[interested_observer]

The reports (released today) indicate that the company recorded "extraordinary" losses of approximately $263 million mostly due to inventory write-off and write-downs over a span of nine months in their semiconductor lithography section, with overall losses totaling approximately $465 million. Though this is not directly due to their photography business, their revised financial forecast for the fiscal year ending March 31, 2017 notes:

* Nikon Experiences 'Extraordinary Losses,' Will Restructure Company | Fstoppers

[beholder3]

Excuses given:

Net Sales: ¥35 billion downward adjustment
- Substantial downward adjustment of expected unit sales of initial assessment for “KeyMission” action camera series due to slow sales
- Reduction in unit sales across most product categories as market slowdown exceeded expectations

• Operating Income: ¥8 billion downward adjustment
- Downward adjustment due to above expected unit reduction
- Difficult to off-set reduction in expected units by expense reduction

• One-time restructuring cost:
- Canceled launch of DL series of premium compact cameras and recorded related expense in one-time restructuring cost

[johnmflores]

Woah. Is someone doomed?

[boriscleto]

Woah. Is someone doomed?

Yes. PentaxIsDooomed™

[monochrome]

The real issue is ASML is eating Nikon Precision's lunch in semiconductor photolithographic steppers. This was hinted in the November 2nd release also.

[Doundounba]

The DL cancellation is a bit of a bummer - the 18-50 looked interesting and unique, IMHO. But Nikon's problems seem much bigger.

[BarryE]

If they were to be 'doomed' this would probably not good for the overall photographic market. I'm sure it would create a bow wave in the photographic market which would hurt many users of all brands.. However, a reasonable shrinkage would allow other manufactures more room. I assume Canon are being underpinned/supported by their other imaging and printing businesses, much like Ricoh I'd guess. The market will have to keep innovation flowing through from R&D, I'm not sure Nikon have been doing this - fortunately Pentax, Sony and Fuji have.

Smart phones have obviously changed how folk take photos, but also how they are being received by the viewer. A thoughtful viewing of a well printed photo is an unusual response from a viewer, a nano-second glance and like is the norm, followed in second place by a 'fun' (?) sequence of a cat doing something 'amusing'. The market has to adapt, unless, like vinyl, it regains some of the aesthetics that made photography so powerful in the last century.

I'll cheer up now ...

[cali92rs]

The DL cancellation is a bit of a bummer - the 18-50 looked interesting and unique, IMHO. But Nikon's problems seem much bigger.

Yea, if the DL 18-50 were made, I would've jumped all over it.

[bobmaxja]

What is important is their action camera is the D500 and they have slow sales. And some Pentax want a similar camera, the proof is not a good thing.

[MJSfoto1956]

What is important is their action camera is the D500 and they have slow sales. And some Pentax want a similar camera, the proof is not a good thing.

Refurbed D500 for $1600US these days (very tempting actually).
Going to be tough for Pentax to launch something similar at a higher price point than that.

M

[NZ_Ross]

It is a tough tough market out there, and Nikon are more vulnerable than most due to most of their income as a company coming from cameras.

In that regard, Pentax being part of a much larger imaging company are in a much better position longer term.

R&D and keeping up with competitive trends costs a lot of time, resource and money and then that has to be recouped in sales.

It will be interesting to see if Nikon can keep up - cost cutting is not going to get them there in the long run, although it is a classic defensive tactic in a declining and mature market.

I have read a number of comments about this Nikon news on other forums today - it would be fair to say the Nikon faithful, and those who have a lot invested in the Nikon system are concerned.

[D1N0]

Let's wait for CP+ to see where Nikon is going

[bobmaxja]

Refurbed D500 for $1600US these days (very tempting actually).
Going to be tough for Pentax to launch something similar at a higher price point than that.

M

And they will not create a product to compete with D500, market is too small as Nikon is finding themselves

[Rondec]

I think the point that has been missed many times is that if you are a big company structured towards a market that desires lots of new releases, even if they have only small changes from past cameras and the market shifts to smaller numbers of sales, then you can end up with a lot of gear sitting on shelves that just doesn't move. Being smaller, turning out fewer numbers of cameras means that you can actually turn a profit in a shrinking market, assuming you target the right price points.

I think Nikon will be around for a long time to come, but I would expect them to back off on the number of new releases and even bump the pricing of current and future gear that they release.

[clackers]

Canon, Nikon and Sony's troubles sadden me.

Their fanboys obviously do more talking than buying.

Fact is, those giants drive the industry, and I wouldn't want any of them to hit the wall.