Sony Q1 financial report: Sony camera revenue -53% down

beholder3 · 08-05-2020, 04:54 AM - **1 Like**

Quote:

FY20 Q1 sales decreased 31% year-on-year to 331.8 billion yen primarily due to a decrease in unit sales of digital cameras and TVs.

Quote:

Sales of image sensors to AV have also decreased due to the contraction of the sensor market for digital cameras resulting from the impact of the spread of COVID- 19. We expect the market to contract in one year as much as we had previously expected it would contract over the next approximately three years.

Sony Q1 financial report: camera sales more than 50% down - Photo Rumors

So Sony's EP&S segment (TVs, smartphones, cameras...) now is writing losses, with their "profits" imploding by more than -130%.
Looking at the figures it seems everthing even in this segment of not really loved by Sony products did outperform cameras.

The educating part here is that we see a very similar revenue slump happen between Canon and Sony. All the while Canon is continueing to sell loads of DSLRs, which Sony can not offer.

When checking CIPA data, we already know that sales (in units) are pretty stable 50:50 DSLR versus DSLM. But the average sales price of the mirrorless cameras has long been twice as high as DSLR, which always suggested that wealthy people tend to buy more expensive (claimed FF) mirrorless cameras.

The other claim has been that the smartphone boom (still selling 1,000 smartphones per ILC) only kills off low end cameras - allegedly APSC DSLR.

Hm. Now Sony's sales (by definition the 100% more expensive toys to the rich consumers) collapse as much as anything else.
That does imply that smartphones have started to kill off as many expensive cameras as cheaper ones.

This in itself is a bad omen for the dreams of quick recovery of ILC sales.

photoptimist · 08-05-2020, 05:55 AM - **2 Likes**

The drop in ILC camera sales probably says more about the drop in travel and tourism than it does about the effects of smartphones. Although the wealthy can certainly afford high-end cameras, they have little reason to buy a new camera in recent months because they are stuck at home.

There's a growing movement toward ostentatious "revenge travel" that is likely to spur sales of travel-related products. With it will come a rebound of ILC sales.

Kozlok · 08-05-2020, 06:47 AM - **2 Likes**

It's also true that the technology has matured substantially. While each new model still brings improvements, they are further between, and the differences are less than they were in the early days. Someone who has a working A7Mii has little reason to upgrade for the Miii, unless they are really enthusiasts.

aaacb · 08-05-2020, 08:14 AM

Originally posted by Kozlok

unless they are really enthusiasts.

There's data showing that people are spending less on non-essentials. What made little logical sense (enthusiasm, I call it consumerism) to upgrade is now not possible or a risk

Zygonyx · 08-05-2020, 08:32 AM

Originally posted by photoptimist

The drop in ILC camera sales probably says more about the drop in travel and tourism than it does about the effects of smartphones. Although the wealthy can certainly afford high-end cameras, they have little reason to buy a new camera in recent months because they are stuck at home.

There's a growing movement toward ostentatious "revenge travel" that is likely to spur sales of travel-related products. With it will come a rebound of ILC sales.

You mean this should happen by, if not before, 2025 to 2027 ?
I'm affraid some of the photo brands will have very hard times before that.

08-05-2020, 04:54 AM - 1 Like	#1
beholder3 Pentaxian Join Date: Dec 2011 Posts: 3,112	Sony Q1 financial report: Sony camera revenue -53% down Quote: FY20 Q1 sales decreased 31% year-on-year to 331.8 billion yen primarily due to a decrease in unit sales of digital cameras and TVs. Quote: Sales of image sensors to AV have also decreased due to the contraction of the sensor market for digital cameras resulting from the impact of the spread of COVID- 19. We expect the market to contract in one year as much as we had previously expected it would contract over the next approximately three years. Sony Q1 financial report: camera sales more than 50% down - Photo Rumors So Sony's EP&S segment (TVs, smartphones, cameras...) now is writing losses, with their "profits" imploding by more than -130%. Looking at the figures it seems everthing even in this segment of not really loved by Sony products did outperform cameras. The educating part here is that we see a very similar revenue slump happen between Canon and Sony. All the while Canon is continueing to sell loads of DSLRs, which Sony can not offer. When checking CIPA data, we already know that sales (in units) are pretty stable 50:50 DSLR versus DSLM. But the average sales price of the mirrorless cameras has long been twice as high as DSLR, which always suggested that wealthy people tend to buy more expensive (claimed FF) mirrorless cameras. The other claim has been that the smartphone boom (still selling 1,000 smartphones per ILC) only kills off low end cameras - allegedly APSC DSLR. Hm. Now Sony's sales (by definition the 100% more expensive toys to the rich consumers) collapse as much as anything else. That does imply that smartphones have started to kill off as many expensive cameras as cheaper ones. This in itself is a bad omen for the dreams of quick recovery of ILC sales.

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08-05-2020, 05:55 AM - 2 Likes	#2
photoptimist Pentaxian Join Date: Jul 2016 Photos: Albums Posts: 5,127	The drop in ILC camera sales probably says more about the drop in travel and tourism than it does about the effects of smartphones. Although the wealthy can certainly afford high-end cameras, they have little reason to buy a new camera in recent months because they are stuck at home. There's a growing movement toward ostentatious "revenge travel" that is likely to spur sales of travel-related products. With it will come a rebound of ILC sales.

08-05-2020, 06:47 AM - 2 Likes	#3
Kozlok Pentaxian Join Date: Jun 2012 Location: Albuquerque Photos: Gallery Posts: 3,148	It's also true that the technology has matured substantially. While each new model still brings improvements, they are further between, and the differences are less than they were in the early days. Someone who has a working A7Mii has little reason to upgrade for the Miii, unless they are really enthusiasts.

08-05-2020, 08:14 AM	#4
aaacb Pentaxian Join Date: May 2016 Photos: Gallery Posts: 3,726	Originally posted by Kozlok unless they are really enthusiasts. There's data showing that people are spending less on non-essentials. What made little logical sense (enthusiasm, I call it consumerism) to upgrade is now not possible or a risk

08-05-2020, 08:32 AM	#5
Zygonyx Pentaxian Join Date: Jun 2011 Location: Ile de France Posts: 4,033	Originally posted by photoptimist The drop in ILC camera sales probably says more about the drop in travel and tourism than it does about the effects of smartphones. Although the wealthy can certainly afford high-end cameras, they have little reason to buy a new camera in recent months because they are stuck at home. There's a growing movement toward ostentatious "revenge travel" that is likely to spur sales of travel-related products. With it will come a rebound of ILC sales. You mean this should happen by, if not before, 2025 to 2027 ? I'm affraid some of the photo brands will have very hard times before that.