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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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Halide announces Kino, a “Pro Video Camera” for iOS

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Halide announces Kino, a “Pro Video Camera” for iOS


Lux, the team behind the Apple Design Award-winning photography app Halide, has announced Kino, an app that it claims will bring pro-level video tools to iPhone users.

The developers state that Kino is intended to give users complete control in both automatic and manual shooting modes based on some clever built-in logic. The app includes a feature called AutoMotion, which automatically sets a 180º shutter angle in order to create cinematic motion blur. An ‘Auto’ label turns green when the settings are just right, letting you know you’re good to go. If the camera can’t achieve a 180º shutter, such as when shooting outdoors in bright light, you may need to add an ND filter to allow the shutter to lock onto the correct angle.

Another headline feature is Instant Grade, which takes advantage of Apple Log, available on the newest iPhone 15 Pro models. Apple’s camera app records Log footage in ProRes format, which creates large files and requires editing to finalize color; Instant Grade will allow users to apply color presets directly to Apple Log footage as it’s being captured and saves the recordings in the more efficient HEVC format, allowing for cinematic video straight out of camera. The app includes color presets from pro colorists, but users can import their own LUTs into the app as well.

Kino includes color presets created by professional colorists.

The app also includes advanced features, such as the ability to save files into either Apple’s Photos app or to a specific file location, composition guides, audio levels, USB-C storage compatibility, RGB waveform, manual focus with peaking, WB/AE lock, exposure compensation and a lockable user interface.

For beginners who may not be as familiar with a video-first workflow, the app will include free lessons on the basics of shooting video.

Kino is available beginning today at a promotional price of $9.99, though the company indicated that the price will increase to $19.99 “a few days after launch.”


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Sigma CEO talks market trends, the challenge of innovation and the future for APS-C

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Sigma CEO talks market trends, the challenge of innovation and the future for APS-C


Sigma CEO Kazuto Yamaki

Photo: Richard Butler

“All camera and lens manufacturers have to be innovative,” says Sigma CEO Kazuto Yamaki, but “technology competition among manufacturers may not always be beneficial to customers… Easier to use interfaces, compact and lightweight bodies for enhanced portability, or some other specifications might be more important.”

In the second part of a wide-ranging interview conducted at the CP+ show in Yokohama in late February, Yamaki talked about current state of the market, the need for innovation and the challenges of delivering that innovation.

State of the market

“Last year was not so bad,” he says, when asked about the state of the market: “It looks like the trend of the shrinking market has hit the bottom.” But he suggests this may not continue: “For the time being, many photographers are now switching from DSLR to mirrorless, which will sustain the market. However, after they switch to mirrorless cameras, I worry that the market could shrink in the coming years.”

“One reason for my concern is the increasing average price of cameras and lenses. I truly appreciate the passion of the customers who are still spending so much money on cameras and lenses. However, I’m afraid that not so many customers can afford such high-priced cameras and lenses, so we’re still trying hard to keep the retail price reasonable.”

“I’m afraid that not so many customers can afford such high-priced cameras and lenses”

“Especially these days, the younger generation takes huge amounts of photos with smartphones. While we can expect some of them to switch from a smartphone to a camera, many may find the price gap too wide, and challenging to make the switch.”

Yamaki also expresses concern about some of the tech trends he’s seeing: “Investing in the development of more advanced technology is crucial. However, it’s equally important to focus on our customers.”

“We’ve seen some cameras with very technically impressive specifications, but I worry that they’re not always capabilities that many photographers really need. Moving forward, I speculate that more user-friendly specifications might mean more to customers. Easier to use interfaces, a compact and lightweight body for enhanced portability, or some other specifications might be more important.”

The challenges of innovation

Sigma has launched some ambitious and unusual lenses in recent years, including the 14mm F1.4 DG DN. Yamaki describes astrophotography, for which it’s designed, as the most challenging subject.

Image: Sigma

He uses the recently announced 500mm F5.6 as an example of customer-focused innovation. “Canon and Nikon had similar lenses for DSLRs. They achieved it by using diffractive lens elements,” he explains: “Instead of using one powerful diffractive element, we used multiple special low-dispersion [SLD] glass. We used one SLD and three FLD elements. By using multiple special lenses, we could achieve a similar effect. That’s how we can make it so compact and lightweight.”

But this approach isn’t simple, he says: “It requires lots of very high manufacturing technology and skill, but because we have a very good factory and our optical designers trust the capability of our factory, we were able to go for this design.”

“In most cases, we are the first to use new types of glass, and once they see Sigma use that lens element, they start using it.”

“This trust is really, really important,” he explains: “Lens polishing is still a unique process that has a lower yield. Normally, in something like electronics, the yield ratio is something like 99.99996 percent, or something like that. But when it comes to lenses, for example, in our case, because our yield is so high, our yield ratio from the start of the process to the end is close to 90%. So if we plan to build 1,000 units of a specific lens, we have to start polishing 1,100 pieces, and during the process, about 10% of the lens elements will fail and have to be scrapped.”

A question of trust

“That’s the reason why other companies hesitate to use new glass elements. They are uncertain about the yield ratio. In most cases, we are the first to use a new type of element, and once they see Sigma use that lens element, they start using it. I’m very happy to play such a role. Sigma is kind of the guinea pig in the lens industry: they use Sigma as an experiment, and if we prove it, they use it.”

This commitment to pushing the use of new glass types reflects Yamaki’s wider vision of the company’s role. This can be seen in the ambitious lenses it’s recently introduced aimed at astrophotography, he says.

“First of all, I believe it’s one of Sigma’s missions to create niche products. If we only concentrate on standard products and release lower-priced versions, it’s not good: we would not be able to contribute to the development of the photography culture. As a lens manufacturer it’s our mission to develop such niche lenses that satisfy a specific target group.”

“Secondly, most lenses are so good, maybe much better than people’s expectations. But only astrophotographers are never satisfied: they’re so keen for quality! They’re looking at the shape of stars in the corners. Star images are the toughest, most challenging subject, or let’s say, the most nasty lens chart. You can see all kinds of aberrations in star images. That’s why we want to show what we can do with our capability. So lenses for astrophotography is my personal strong passion to show the capability of Sigma’s technology.”

The future of APS-C

Yamaki says the audience for its I-series of full-frame lenses, such as the 17mm F4 DG DN pictured, is similar to that for the DC DN range of APS-C primes. However, it doesn’t sound like there are plans for I-series-style versions of the DC lenses.

Image: Sigma

With all this talk of niches, we steered the conversation towards the DC DN primes. We wanted to know whether he sees the users of these lenses as distinct from those of the mid-priced i-Series full-frame primes, which feature metal bodies and aperture rings.

“I see they are very similar customers: those who value compactness and image quality. These customers often live in big cities and use public transportation a lot. So they cannot carry around big, heavy equipment in the car. They have to carry it around in their bags.”

Despite this, it doesn’t sound like there are any plans to refresh the DC DNs with more i-Series-like designs: “Those who want full-frame can use the I series lenses, while those who are happy with APS-C cameras can use the many lightweight DC DN lenses,” he says.

But, while we won’t expect APS-C primes with aperture rings for X-mount or the Nikon Z fc any time soon, Yamaki’s comments about his commitment to APS-C bode well, given the announcement that it’ll make lenses for both Nikon’s Z mount and Canon’s RF system:

“Our plan is to have a relatively complete range of lenses for APS-C sized sensors.”


This article was based on an interview conducted by Dale Baskin and Richard Butler at the CP+ show in Yokohama, Japan.



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Sigma CEO talks market trends, the challenge of innovation and the future for APS-C

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Sigma CEO talks market trends, the challenge of innovation and the future for APS-C


Sigma CEO Kazuto Yamaki

Photo: Richard Butler

“All camera and lens manufacturers have to be innovative,” says Sigma CEO Kazuto Yamaki, but “technology competition among manufacturers may not always be beneficial to customers… Easier to use interfaces, compact and lightweight bodies for enhanced portability, or some other specifications might be more important.”

In the second part of a wide-ranging interview conducted at the CP+ show in Yokohama in late February, Yamaki talked about current state of the market, the need for innovation and the challenges of delivering that innovation.

State of the market

“Last year was not so bad,” he says, when asked about the state of the market: “It looks like the trend of the shrinking market has hit the bottom.” But he suggests this may not continue: “For the time being, many photographers are now switching from DSLR to mirrorless, which will sustain the market. However, after they switch to mirrorless cameras, I worry that the market could shrink in the coming years.”

“One reason for my concern is the increasing average price of cameras and lenses. I truly appreciate the passion of the customers who are still spending so much money on cameras and lenses. However, I’m afraid that not so many customers can afford such high-priced cameras and lenses, so we’re still trying hard to keep the retail price reasonable.”

“I’m afraid that not so many customers can afford such high-priced cameras and lenses”

“Especially these days, the younger generation takes huge amounts of photos with smartphones. While we can expect some of them to switch from a smartphone to a camera, many may find the price gap too wide, and challenging to make the switch.”

Yamaki also expresses concern about some of the tech trends he’s seeing: “Investing in the development of more advanced technology is crucial. However, it’s equally important to focus on our customers.”

“We’ve seen some cameras with very technically impressive specifications, but I worry that they’re not always capabilities that many photographers really need. Moving forward, I speculate that more user-friendly specifications might mean more to customers. Easier to use interfaces, a compact and lightweight body for enhanced portability, or some other specifications might be more important.”

The challenges of innovation

Sigma has launched some ambitious and unusual lenses in recent years, including the 14mm F1.4 DG DN. Yamaki describes astrophotography, for which it’s designed, as the most challenging subject.

Image: Sigma

He uses the recently announced 500mm F5.6 as an example of customer-focused innovation. “Canon and Nikon had similar lenses for DSLRs. They achieved it by using diffractive lens elements,” he explains: “Instead of using one powerful diffractive element, we used multiple special low-dispersion [SLD] glass. We used one SLD and three FLD elements. By using multiple special lenses, we could achieve a similar effect. That’s how we can make it so compact and lightweight.”

But this approach isn’t simple, he says: “It requires lots of very high manufacturing technology and skill, but because we have a very good factory and our optical designers trust the capability of our factory, we were able to go for this design.”

“In most cases, we are the first to use new types of glass, and once they see Sigma use that lens element, they start using it.”

“This trust is really, really important,” he explains: “Lens polishing is still a unique process that has a lower yield. Normally, in something like electronics, the yield ratio is something like 99.99996 percent, or something like that. But when it comes to lenses, for example, in our case, because our yield is so high, our yield ratio from the start of the process to the end is close to 90%. So if we plan to build 1,000 units of a specific lens, we have to start polishing 1,100 pieces, and during the process, about 10% of the lens elements will fail and have to be scrapped.”

A question of trust

“That’s the reason why other companies hesitate to use new glass elements. They are uncertain about the yield ratio. In most cases, we are the first to use a new type of element, and once they see Sigma use that lens element, they start using it. I’m very happy to play such a role. Sigma is kind of the guinea pig in the lens industry: they use Sigma as an experiment, and if we prove it, they use it.”

This commitment to pushing the use of new glass types reflects Yamaki’s wider vision of the company’s role. This can be seen in the ambitious lenses it’s recently introduced aimed at astrophotography, he says.

“First of all, I believe it’s one of Sigma’s missions to create niche products. If we only concentrate on standard products and release lower-priced versions, it’s not good: we would not be able to contribute to the development of the photography culture. As a lens manufacturer it’s our mission to develop such niche lenses that satisfy a specific target group.”

“Secondly, most lenses are so good, maybe much better than people’s expectations. But only astrophotographers are never satisfied: they’re so keen for quality! They’re looking at the shape of stars in the corners. Star images are the toughest, most challenging subject, or let’s say, the most nasty lens chart. You can see all kinds of aberrations in star images. That’s why we want to show what we can do with our capability. So lenses for astrophotography is my personal strong passion to show the capability of Sigma’s technology.”

The future of APS-C

Yamaki says the audience for its I-series of full-frame lenses, such as the 17mm F4 DG DN pictured, is similar to that for the DC DN range of APS-C primes. However, it doesn’t sound like there are plans for I-series-style versions of the DC lenses.

Image: Sigma

With all this talk of niches, we steered the conversation towards the DC DN primes. We wanted to know whether he sees the users of these lenses as distinct from those of the mid-priced i-Series full-frame primes, which feature metal bodies and aperture rings.

“I see they are very similar customers: those who value compactness and image quality. These customers often live in big cities and use public transportation a lot. So they cannot carry around big, heavy equipment in the car. They have to carry it around in their bags.”

Despite this, it doesn’t sound like there are any plans to refresh the DC DNs with more i-Series-like designs: “Those who want full-frame can use the I series lenses, while those who are happy with APS-C cameras can use the many lightweight DC DN lenses,” he says.

But, while we won’t expect APS-C primes with aperture rings for X-mount or the Nikon Z fc any time soon, Yamaki’s comments about his commitment to APS-C bode well, given the announcement that it’ll make lenses for both Nikon’s Z mount and Canon’s RF system:

“Our plan is to have a relatively complete range of lenses for APS-C sized sensors.”


This article was based on an interview conducted by Dale Baskin and Richard Butler at the CP+ show in Yokohama, Japan.



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