Originally posted by Digitalis Nikon are playing the role of undertakers. Good luck to them.
Indeed! And yet if they can resurrect the low-end from the dead, they will be rich beyond their wildest imagination.
Smartphone sales are running at 1.5 billion units a year. That's 1.5 billion potential customers using sucky smartphone cameras. If Nikon can convince just 1% of those people that they need a better camera, they'll sell 15 million units per year.
The interview mentioned "industrial lenses" which seems to refer to the lenses Nikon puts into their semiconductor lithography systems. Some of these lenses have numerical apertures brighter than f/1 (so-called "hyper NA" lenses) and extremely high edge-to-edge resolution. Sure, they're designed for monochromatic light, but there's a certain poetry to using a cousin of the lens that made the sensor to then image the world for that sensor. I could even see them doing something really exotic such as putting the sensor in a sealed immersion cell bonded to the back element of the lens. Filled with some appropriate high-index fluid, it would: 1) improve optical coupling between the lens and the sensor; 2) enable much more compact wide-angle lenses; 3) optically synthesize a curved sensor geometry for less vignetting; 4) reduce sensor dust issues; 5) even help dissipate heat from the sensor.
And Nikon surely has plenty of manufacturing capacity in their small-camera, instrument, and lithography units sitting idle so the net margins on a new high-performance compact camera could be quite high.
Thus, there's the opportunity, the technology, and the manufacturing capacity to do something really interesting.
Yet it's a huge risk because of the gulf between consumers and photographers. Although anyone who is serious about photography -- and I'm sure most of the people at Nikon are -- knows that smartphone cameras suck, the average consumer doesn't know that. If Nikon can't see beyond their own convictions of the superiority of their products, they might over-invest in a concept that is both technologically superior and yet spurned in the market.
But still, even a tiny percentage of 1.5 billion is a very big volume of sales.