Forgot Password
Pentax Camera Forums Home
 

Reply
Show Printable Version Search this Thread
05-11-2017, 09:19 PM   #1
Loyal Site Supporter
Loyal Site Supporter




Join Date: Jun 2009
Location: Tumbleweed, Arizona
Photos: Gallery | Albums
Posts: 5,578
Nikon's Year (Financial Results) - an analysis

QuoteQuote:
Here's the crazy corner Nikon is in: they can claim a modest 7% increase in operating income for the fiscal year that they just finished, but had far lower net sales and with restructuring costs had a significant loss. Nikon predicts that they'll recover to profitability next fiscal year, but with lower sales. They predict the imaging market will shrink, but they'll strengthen the profit of that group. The see saw is bouncing up and down. One end up, the other down, then that end up, the other down.

Most interesting is the way Nikon describes their restructuring process:



05-11-2017, 09:30 PM   #2
Loyal Site Supporter
Loyal Site Supporter
monochrome's Avatar

Join Date: Mar 2008
Location: Working From Home
Photos: Gallery | Albums
Posts: 26,276
"Target transformation into a company that can sustain 8% ROE in the mid term."

Poor Nikon. Hoya described cameras as an 8% ROE business and they didn't want to own companies offering less than 20% ROE. Nikon apparently hopes to restore an average Return on Equity in a few years - which is a business Hoya asset-stripped then unceremoniously dumped.
05-11-2017, 11:33 PM   #3
Site Supporter
Site Supporter
Pioneer's Avatar

Join Date: Aug 2009
Location: Elko, Nevada
Photos: Gallery | Albums
Posts: 1,296
I read somewhere that the precipitous drop in digital camera sales was now beginning to level out.

Somehow Nikon didn't get that news.
05-12-2017, 02:48 AM   #4
Pentaxian
Mistral75's Avatar

Join Date: Feb 2009
Location: Paris, France
Posts: 6,537
QuoteOriginally posted by Pioneer Quote
I read somewhere that the precipitous drop in digital camera sales was now beginning to level out.

(...)
Q1 2017 compared to Q1 2016 (shipments):

- cameras with built-in lens: idem in # of units and +6.9% in sales
- ILCs : +5.8% in # of units and +14.3% in sales

- SLRs: -8.3% in # of units and +4.3% in sales
- mirrorless cameras: +45.0% in # of units and +36.6% in sales

- lenses: +0.3% in # of units and -0.5% in sales

- 24x36 lenses: -9.7% in # of units and -6.2% in sales
- lenses for smaller formats: +4.5% in # of units and +6.9% in sales.

The above comes from CIPA data: http://www.cipa.jp/stats/documents/e/d-201703_e.pdf for the cameras and http://www.cipa.jp/stats/documents/e/s-201703_e.pdf for the lenses.

05-12-2017, 03:22 AM   #5
Pentaxian




Join Date: Dec 2011
Posts: 2,946
QuoteOriginally posted by Mistral75 Quote
Q1 2017 compared to Q1 2016 (shipments):

- SLRs: -8.3% in # of units and +4.3% in sales
- mirrorless cameras: +45.0% in # of units and +36.6% in sales

- lenses: +0.3% in # of units and -0.5% in sales

- 24x36 lenses: -9.7% in # of units and -6.2% in sales
- lenses for smaller formats: +4.5% in # of units and +6.9% in sales.

The above comes from CIPA data: http://www.cipa.jp/stats/documents/e/d-201703_e.pdf for the cameras and http://www.cipa.jp/stats/documents/e/s-201703_e.pdf for the lenses.
From there on it is simple math:
If the market is down -8,3% in units and Nikon units are down -19%, then somebody else is gaining marketshare at incredible speed: Canon.

Even bloggers don't see Nikon as a real competitor to Canon any longer (and that is the rosy colored view of a Nikon fan already):
QuoteQuote:
Those are bad numbers, folks. As badly as Nikon slipped in the overall market (market share decline) in the past year, they expect the same in the coming year. The duopoly is now more a monopoly. With Nikon at 23% and Canon at 48% for ILC bodies, we have a strong player and a weak player. The weak player is Nikon.
One last comment. Nikon is clearly more interested in the profit margin that you provide them than they are in terms of how many of you there are in total. But another announcement they made today makes that even more curious: they've revised their Shareholder Returns Policy. They used to attempt to provide a "total return ratio of 30% or more." Now they're targeting a "dividend payout ratio of 40% or more." Where are customers in any of this? Apparently not squarely in management's vision. Nikon is managing to appease shareholders, who aren't seeing growth in the company. Now, obviously, businesses exist to maximize profits/value to shareholders. But the way you do that is by producing products and services that appeal to customers. You can't have one without the other. That graph just above tells you that Nikon's products and services are becoming less appealing to customers. That's a warning sign.
05-12-2017, 04:50 AM   #6
Loyal Site Supporter
Loyal Site Supporter
monochrome's Avatar

Join Date: Mar 2008
Location: Working From Home
Photos: Gallery | Albums
Posts: 26,276
What does all this mean for Pentax?
05-12-2017, 05:08 AM   #7
Pentaxian




Join Date: Dec 2011
Posts: 2,946
QuoteOriginally posted by monochrome Quote
What does all this mean for Pentax?
In how far do financial number of one company affect another? I do not think you can derive any actions from this for another player.

Only: Don't try to be like Nikon with products, prices, marketing, service. Try to be like Canon is the only thing that is obvious (or stay in an attractive niche where Canon is not yet). Canon creates attractive, market leading products. Nikon doesn't.

Without proper market research WHY Nikon product are considered low quality (quality is fulfilling any customer requirements) compared to Canon nobody here can know.

05-12-2017, 06:02 AM   #8
Loyal Site Supporter
Loyal Site Supporter




Join Date: Apr 2010
Location: Tennessee
Posts: 6,615
QuoteOriginally posted by monochrome Quote
What does all this mean for Pentax?
I don't think it means a whole lot for Pentax. The ball is in their court.
05-12-2017, 06:15 AM   #9
Site Supporter
Site Supporter




Join Date: Mar 2009
Location: Gladys, Virginia
Photos: Gallery
Posts: 23,673
QuoteOriginally posted by monochrome Quote
What does all this mean for Pentax?
The biggest message in general is not to sit on your laurels. There was a perception a few years ago that Canon and Nikon were set and all they had to do was hunker and down and continue doing what they had done for the last ten years and they would continue to control 80 or 85 percent of the camera market, limiting the rest of the players to the fringes.

I think Nikon was banking on better DXO Mark scores and things like that to sell their cameras and it turns out that photographers don't really buy cameras based on DXO Mark scores.

From Pentax's stand point, they need to figure out who they are and make cameras and lenses that emphasize that. Slow growth in a shrinking market is probably a recipe for success.
05-12-2017, 09:58 AM   #10
Pentaxian
mecrox's Avatar

Join Date: Apr 2009
Location: Oxford, UK
Photos: Gallery
Posts: 2,375
Nikon seem to have thought that folks would go on buying DSLRs come what may and would pay anything if the item had a Nikon badge on the front. Now their entire fortunes depend on a handful of DSLRs all of which are closely shadowed by Canon and Sony, and they have no presence in the premium compact market, the mirrorless market, the video market - growth areas in the case of MILC and video which are being hoovered up by Sony and Canon. And by now people are probably either offloading Nikon equipment or not buying it in the first place for fear of where the company will be in another three years. Dial 911.

I guess about the only impact for Pentax is whether Canon and Sony doing quite well recently has been on the basis of taking all their gains only from Nikon or from others too, like Pentax, Fuji. etc. However, I suppose Nikon diving south could alter the dynamics of the market if it also means that the DSLR segment as a whole suffers and comes to be seen as an area to be wary of. Lining up some kind of mirrorless solution could be important for Pentax were that to happen.

Last edited by mecrox; 05-12-2017 at 12:57 PM.
05-13-2017, 05:49 AM   #11
Pentaxian




Join Date: Dec 2011
Posts: 2,946
The big questions are on which product quality (camera / lens technology and price) and on which service quality ( support / marketing) Nikon sucks so badly that they are dwindling away to be no match any longer to Canon (which they copied all the time) in the view of the majority so they jump ship to other makers in massive numbers.

Once you can identify the quality issues that drove the customer away, you can try to be better.

With just this defensive profit raising "strategy" (which is not a lot more than price hikes without providing equal product quality improvements) Nikon is going to end up as a real small player as this will only have the die hard fans already deeply invested stay on board (for a while).

So what are the biggest failures on Nikon product and service side?
Reply

Bookmarks
  • Submit Thread to Facebook Facebook
  • Submit Thread to Twitter Twitter
  • Submit Thread to Digg Digg
Tags - Make this thread easier to find by adding keywords to it!
nikon, results, sales
Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ricoh Financial results - FY2017/03 Kunzite Pentax News and Rumors 373 04-28-2017 06:10 AM
Sony financial results - A7 etc. camera collapse with interesting insights beholder3 Photographic Industry and Professionals 29 12-10-2016 01:55 AM
Ricoh Imaging is not doomed (or: Ricoh Financial Results Q1 2016) Kunzite Pentax News and Rumors 69 10-24-2015 10:31 AM
Ricoh Financial Results Q3 2014 JPT Photographic Industry and Professionals 18 02-16-2014 12:14 PM
Pentax Financial results Q1 FY14 Zav Pentax News and Rumors 38 08-20-2013 05:44 PM



All times are GMT -7. The time now is 10:12 AM. | See also: NikonForums.com, CanonForums.com part of our network of photo forums!
  • Red (Default)
  • Green
  • Gray
  • Dark
  • Dark Yellow
  • Dark Blue
  • Old Red
  • Old Green
  • Old Gray
  • Dial-Up Style
Hello! It's great to see you back on the forum! Have you considered joining the community?
register
Creating a FREE ACCOUNT takes under a minute, removes ads, and lets you post! [Dismiss]
Top