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Nikon Q3 financial report: revenue and profit down double-digits as it prepares for future sustainability

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Nikon Q3 financial report: revenue and profit down double-digits as it prepares for future sustainability

Nikon has released third-quarter (Q3) financial results for its 2021 fiscal year (FY2021), revealing the harsh realities of a shrinking market further impacted by the COVID-19 pandemic. As doom-and-gloom as the numbers may appear though, it seems Nikon’s Imaging Products Business has survived the worst of it and has set itself up for a sustainable future going forward.

Nikon’s consolidated Q1-Q3 results include data from April 1, 2020 through December 31, 2020, as its fiscal years start on April 1 and end of March 31 of the following year. In order to get a larger picture of Nikon’s situation throughout the pandemic, nearly all of the numbers we reference will include the consolidated Q1-Q3 results rather than isolating only Nikon’s Q3, which doesn’t tell the whole story.

Nikon’s latest financial results for its Imaging Products Business for Q3 and Q1-Q3 timeframe. Highlighted yellow is FY2021, while the columns to the left show the same timeframes for Nikon’s FY2020 results. Click to enlarge.

Nikon’s Imaging Products Business revenue for FY2021 Q1-Q3 was ¥116.7B / $1.1B, down 38% (¥72.3B / $685M) year-over-year (YoY). During that same time, Nikon’s operating loss amounted to ¥28B / $265M, a decrease of ¥29.2B / $277M for the same period last year, which still showed an operating profit, albeit a relatively small one (¥1.2B / $11.3M). While the massive drop in operating profit doesn’t look promising, Nikon does note ¥16B / $151M of that loss was ’fixed asset impairments and disposal/write-down of inventory in Q2 and Q3, and ¥1.9B [$18M] of restructuring relevant expenses.’

The outside of Nikon’s Sendai Factory.

Based on the recent reports that Nikon is moving all of its camera and much of its lens production from Japan to Thailand, it’s likely Nikon is writing off much of the machinery it used in its domestic facilities in order to balance the books come tax time. It also seems Nikon had to get rid of excess inventory in Q2 and Q3, as demand was low at the peak of the pandemic’s impact on the global economy. Considering Nikon explicitly says mirrorless camera sales are doing well, it’s likely safe to say DSLR cameras were the victims of the inventory purge.

A bar graph showing the breakdown of unit sales for various product categories going back to FY2018. Click to enlarge.

Speaking of camera sales, Nikon says it sold 660K interchangeable lens cameras (both mirrorless and DSLR cameras) and 1.08M interchangeable lenses from Q1-Q3, a decrease of 720K and 1.18M, respectively, YoY for the same time frame. Much like we saw in Canon’s latest financial report, however, revenue from those sales hasn’t dropped in parallel with units (as a percentage), meaning the units that are selling tend to be higher in price. Nikon explicitly says as much itself saying its ‘shift to mid to high-end models for pro/hobbyist has been progressing smoothly, and unit sales price has risen.’ As for the numbers to back it up, revenue was down only 38.3% YoY for Q1-Q3, despite sales volume being down 52.2% for both interchangeable lens cameras and interchangeable lenses during that time.

A section of notes from Nikon’s presentation that shows (highlighted yellow) its thoughts on its Imaging Products Business through the remainder of FY2021. Click to enlarge.

Looking forward, Nikon has revised its full-year FY2021 revenue and operating profit by ¥5B, to ¥145B and -¥40B, respectively, ‘thanks to increased revenue and advanced business cost reductions.’ Nikon says it will continue to advance its emphasis on producing mid-to-high-end models for ‘pro/hobbyist’ photographers.

It’s been a rough year for Nikon, there’s no denying that. But as nearly everyone else in the industry has in this unprecedented™ year, it appears Nikon is making the necessary moves to stay profitable through reducing costs (moving production from Japan to Thailand) and streamlining its product lineup to only the most profitable units (shifting to mid-to-high-end models). Only time will tell what the future holds for Nikon and its Imaging Products Business.

You can find the FY2021 Q3 financial results presentation and data on Nikon’s investor relations website.

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Pentax K-1 and K-1 II firmware updates include astrophotography features (depending on where you live)

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Pentax K-1 and K-1 II firmware updates include astrophotography features (depending on where you live)


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Yesterday, Ricoh quietly released firmware 2.50 for its Pentax K-1 and K-1 II DSLRs. However, the features you can expect to gain from this update may depend on your geography.

Ricoh’s English-language firmware pages for the K-1 and K-1 II state that firmware 2.50 delivers “Improved stability for general performance.”

However, astute Pentax users noted that Ricoh’s Japanese-language firmware pages (translation) indicate that the update also includes a limited feature called “Astronomical Photo Assist,” a collection of three new features designed for astrophotography: Star AF, remote control focus fine adjustment, and astronomical image processing.

Star AF is intended to automate focusing on stars when using autofocus lenses. Rather than manually focusing on a bright star and changing your composition, it promises to let you compose your shot and let the camera focus.

Remote control fine adjustment allows users to adjust focus without touching the lens and requires Pentax’s optional O-RC1 remote. Astronomical image processing will enable users to make in-camera adjustments to astrophotography images, including shading correction, fogging correction, background darkness, star brightness, celestial clarity, and fringe correction.

Astronomical image processing on the K-1 and K-1 II will enable users to make in-camera adjustments to astrophotography images, including shading correction, fogging correction, background darkness, star brightness, celestial clarity, and fringe correction.

According to Ricoh, Astronomical Photo Assist is a premium feature that must be purchased and costs ¥11,000 for an activation key (about $70 at current exchange rates).

Although these astrophotography features appear to be Japan-only for now, a Ricoh representative tells us, “Ricoh Imaging Americas confirmed that the premium firmware features for the PENTAX K-1 and PENTAX K-1 Mark II will eventually be available to US customers.”

Firmware update 2.50 for both the K-1 and K-1 II is available for download from Ricoh’s website.



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On this day 2017: Nikon launches D850

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On this day 2017: Nikon launches D850


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As part of our twenty fifth anniversary, we’re looking back at some of the most significant cameras launched and reviewed during that period. Today’s pick was launched seven years ago today* and yet we’re only quite recently stepping out of its shadow.

The Nikon D850 is likely to be remembered as the high watermark of DSLR technology. We may yet still see impressive developments from Ricoh in the future (we’d love to see a significantly upgraded Pentax K-1 III), but the D850 was perhaps the green flash as the sun set on the DSLR as the dominant technology in the market.

Click here to read our Nikon D850 review

Why do we think it was such a big deal? Because it got just about everything right. Its 45MP sensor brought dual conversion gain to high pixel count sensors, meaning excellent dynamic range at base ISO and lower noise at high ISOs. Its autofocus system was one of the best we’ve ever seen on a DSLR: easy to use and highly dependable, with a good level of coverage. And then there was a body and user interface honed by years of iterative refinement, that made it easy to get the most out of the camera.

None of this is meant as a slight towards the other late-period DSLRs but the likes of Canon’s EOS 5DS and 5DSR didn’t present quite such a complete package of AF tracking, daylight DR and low-light quality as the Nikon did. With its ability to shoot at up to 9fps (if you used the optional battery grip), the D850 started to chip away at the idea that high megapixel cameras were specialized landscape and studio tools that would struggle with movement or less-than-perfect lighting. And that’s without even considering its 4K video capabilities.

In the seven years since the D850 was launched, mirrorless cameras have eclipsed most areas in which DSLRs once held the advantage. For example, the Z8 can shoot faster, autofocus more with more accuracy and precision, across a wider area of the frame and do so while shooting at much faster rates.

But, even though it outshines the D850 in most regards, the Z8 is still based around what we believe is a (significant) evolution of the same sensor, and its reputation still looms large enough for Nikon to explicitly market the Z8 as its “true successor.”

Nikon D850 sample gallery

Sample gallery
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*Actually seven years ago yesterday: we had to delay this article for a day to focus on the publishing the Z6III studio scene: the latest cameras taking precedence over our anniversary content.



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Nikon Z6III added to studio scene, making image quality clear

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Nikon Z6III added to studio scene, making image quality clear


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Photo: Richard Butler

We’ve just received a production Nikon Z6III and took it into our studio immediately to get a sense for how the sensor really performs.

Dynamic range tests have already been conducted, but these only give a limited insight into the image quality as a whole. As expected, our Exposure Latitude test – which mimics the effect of reducing exposure to capture a bright sunrise or sunset, then making use of the deep shadows – shows a difference if you use the very deepest shadows, just as the numerical DR tests imply.

Likewise, our ISO Invariance test shows there’s more of a benefit to be had from applying more amplification by raising the ISO setting to overcome the read noise, than there was in the Z6 II. This means there’s a bigger improvement when you move up to the higher gain step of the dual conversion gain sensor but, as with the Z6 II, little more to be gained beyond that.

These are pushing at the extreme of the sensor’s performance though. For most everyday photography, you don’t use the deepest shadows of the Raw files, so differences in read noise between sensors don’t play much of a role. In most of the tones of an image, sensor size plays a huge role, along with any (pretty rare) differences in light capturing efficiency.

Image Comparison
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As expected, the standard exposures look identical to those of the Z6 II. There are similar (or better) levels of detail at low ISO, in both JPEG and Raw. At higher ISO, the Z6III still looks essentially the same as the Z6II. Its fractionally higher level of read noise finally comes back to have an impact at very, very high ISO settings.

Overall, then, there is a read noise price to be paid for the camera’s faster sensor, in a way that slightly blunts the ultimate flexibility of the Raw files at low ISO and that results in fractionally more noise at ultra-high ISOs. But we suspect most people will more than happily pay this small price in return for a big boost in performance.



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