The Nikon struggle to Survive Nov 2020

[Out to Lunch]

https://petapixel.com/2020/11/09/ne...al-workforce-transfer-production-to-thailand/


Unlike the Koreans and Taiwanese, the Japanese are known as timid investors. They should have moved part of their production to Vietnam, instead. Cheers, OtL

 

[Rick Waldroup]

Man, the numbers do not look pretty. I do not shoot Nikons anymore but I did for many, many years. This is just the beginning, I fear. Some of the cameras in phones today are excellent and are only going to get better.

 

[sooner]

The numbers are indeed semi-apocalyptic in terms of overall sales declines, but I find a silver lining in two aspects. One, they are "right-sizing" their costs/size and production to meet volume in a profitable manner. Two, they are relying on advances in production technology to reduce costs. This supports my wishful thinking that photography, especially film photography, like many industries (vinyl records?), will become global "niche" industries. Where does it say that you can't make it if you don't sell millions of units? Of course this from a guy who can't afford Leicas, so affordability is key. Niche but not too niche, ha ha!

 

[BillBingham2]

I fear (for Nikon) that they have missed many niches with the Z series glass.

B2 (;->

 

[zuiko85]

Nikon is not too big or too established to fail. Look what happened to Kodak. A hollowed out shell of a once dominant company, in one generation.
Or Minolta.....Konica......Olympus.....?
Perhaps Konica-Minolta were smart to get out as early as they did.

 

[PKR]

I'm confused..

The article says that, cameras are the core product of Nikon's business. I've used Nikon gear for years and, have dealt with Nikon USA a lot, both as an NPS member and, as an advisor a time or two.

I always understood, their industrial group (Instrument Division) to be huge when compared to the camera division. I know, they aren't in the Stepper business any longer (?) but, their microscopes and other industrial optical products were a far bigger share of their income than cameras.

Has this changed?

Nikon is part of the Mitsubishi Group, I think?


Edit: They're still in the Stepper Business
https://www.nikon.com/products/semi/

 

[Ricoh]

What’s the mark up on cameras, ex works to point of sale? Then there’s the profit per camera for Nikon.
If they care, I’ll have a Z6 off them at half the current retail asking price.

 

[jonmanjiro]

Nikon's factory in Ayutthaya, Thailand has been operating successfully for many years. Its not that huge of a step to move some production from Miyagi Prefecture to that factory.

All manufacturers of consumer products have been hit pretty badly by the fallout from the pandemic. Nikon isn't an exception there.

Nikon's imaging products business (cameras and lenses) is only about 35-40% of their total business. The precision equipment business (IC steppers, FPD steppers) is about the same size or larger, and is relatively stable in comparison. The healthcare business (instruments etc.) and the metrology business are much smaller, but are also relatively stable in comparison.

Nikon has been slimming down for years, and doing a pretty good job of it. Nobody expected a pandemic to come along though.

 

[PKR]

Nikon's factory in Ayutthaya, Thailand has been operating successfully for many years. Its not that huge of a step to move some production from Miyagi Prefecture to that factory.

All manufacturers of consumer products have been hit pretty badly by the fallout from the pandemic. Nikon isn't an exception there.

Nikon's imaging products business (cameras and lenses) is only about 35-40% of their total business. The precision equipment business (IC steppers, FPD steppers) is about the same size or larger, and is relatively stable in comparison. The healthcare business (instruments etc.) and the metrology business are much smaller, but are also relatively stable in comparison.

Nikon has been slimming down for years, and doing a pretty good job of it. Nobody expected a pandemic to come along though.

Thanks Jon, I was hoping you would see this and comment.

Best, pkr

 

[kshapero]

I am a Nikon fan boy. Don't worry the Wizard of Oz will save them. I think.

 

[farlymac]

I feel like they wasted their resources chasing the consumer market with all those Coolpix models. That money could have been invested in a rangefinder style FX camera line that would knock Fuji for a loop.


PF

 

[jarski]

camera companies should improve the image processing by AI to match the phones, for people who don't want edit raw files but still want benefits of larger sensor. yes I know, easier said than done but thats how I believe.

 

[Mackinaw]

Just read that Nikon has laid off 2,000 people, outside of Japan, and has apparently cut their R&D budget too. Drastic measures for trying times.

Jim B.

 

[Ko.Fe.]

Why Nikon should stay in business?
It seems obvious by now to have traditional digital gear to end its momentum.
To keep on selling gear it has to be fancy. Here is nothing good in technical aspects of any Leica digital camera, but they have no shortage of those who are willing to overpay just to feel good. FujiNoFilm cameras output isn't much different from cheaper Canon Rebels, but FnF cameras have sexy bells and whistles attached on the top plate. Nice decor to make consumer feel good. Or Ricoh with its tiny camera. And Sony despite all cameras designed by same Corolla originator is providing some noticeable improvements.
And what Nikon does? Releasing copy-paste of EVF cameras with ugly appeal.
No sex, no sales.

 

[maddoc]

I spoke with an engineer last year in Taipei who worked for the biggest European competitor of Nikon in chip production devices. He told me that Taiwan took the lead over Japan in this field because they took the risk of trying new things quickly and being innovative. Innovation is a biz word here in Japan also but it translates into "Do not change anything".

Innovative cameras are made as Kickstarter projects these days anyway.

 

[kbb]

camera companies should improve the image processing by AI to match the phones, for people who don't want edit raw files but still want benefits of larger sensor. yes I know, easier said than done but thats how I believe.

There is a [very?] large market for this. Most camera owners want a good, adjustable, interchangable-lens camera, but do not want to spend 10 seconds in post-production.

 

[jonmanjiro]

I spoke with an engineer last year in Taipei who worked for the biggest European competitor of Nikon in chip production devices. He told me that Taiwan took the lead over Japan in this field because they took the risk of trying new things quickly and being innovative.

> the biggest European competitor of Nikon in chip production devices

That would be ASML. Nikon (and Canon) just didn't have the knowhow to keep up. Not being able to innovate certainly was a factor. That's just the IC steppers though, and it was factored in some years ago. Its not the cause of the latest disappointing sales figures. Afaik the FPD steppers side of the precision equipment business is still doing ok.

 

[Nitroplait]

Click bait - no mention of survival struggle in that article.
Don't we have enough drama in our lives?

 

[PKR]

I spoke with an engineer last year in Taipei who worked for the biggest European competitor of Nikon in chip production devices. He told me that Taiwan took the lead over Japan in this field because they took the risk of trying new things quickly and being innovative. Innovation is a biz word here in Japan also but it translates into "Do not change anything".

Innovative cameras are made as Kickstarter projects these days anyway.

Hi Doc;

In the last few years, EVU Litho has been making in-roads into the optical stepper world. I wasn't sure of the progress. It's why i wondered about Nikon Steppers. The technology has moved beyond what most (all?) lens optics will deliver. It seems, it's all mirrors and LASERS with the new device. As Jon says, ASML is the major player.

This isn't my field and, i don't keep up with the day to day advancements. But, there's lots written about the new technology. I don't know if Nikon can/will compete in the changing technology? Maybe, Jon is up on this?

How does the laser technology in EUV lithography work?
https://www.laserfocusworld.com/blo...-the-laser-technology-in-euv-lithography-work

 

[Highway 61]

Why Nikon should stay in business?
It seems obvious by now to have traditional digital gear to end its momentum.
To keep on selling gear it has to be fancy. Here is nothing good in technical aspects of any Leica digital camera, but they have no shortage of those who are willing to overpay just to feel good. FujiNoFilm cameras output isn't much different from cheaper Canon Rebels, but FnF cameras have sexy bells and whistles attached on the top plate. Nice decor to make consumer feel good. Or Ricoh with its tiny camera. And Sony despite all cameras designed by same Corolla originator is providing some noticeable improvements.
And what Nikon does? Releasing copy-paste of EVF cameras with ugly appeal.
No sex, no sales.

You may be right. For long, Nikon users could feel they were using some Leica-spirit gifted cameras. That was noticeably a fair marketing game between the two companies in the 1970s and 1980s. When it was released, most of the FM2 new owners got the feeling of having the perfect equivalent of an M6 in their hands, for a price they could afford.

Nowadays Nikon bodies have nothing special but their technical qualities and their image output. For instance, my (bought for very cheap from second hand with very little shutter actuations and in like new condition) D610 probably outperforms the M240 in terms of reliability, flexibility and RAW quality output, at any ISO settings. Yet I am not able to come to like that camera, which I don't use and which now takes dust in the cupboard. The Z6 and Z7 have zero appeal to me. I have been a long-time faithful Nikon user but if film was to disappear I would probably either stop taking photos or break my wallet and buy an M240 or M10 with a set of three ZM lenses. For now, this is keeping stuck with film Nikon bodies and manual Nikkors, with zero money put in the Nikon digital photo industry. I guess that many amateur Nikon photographers may be doing this. Before the pandemic, when I used to travel a bit, I could meet some here and there, and discuss that topic with them.

Some people at Nikon haven't realized that, besides the "pro" customers (sports, commercial and news photographers) in need of cameras like the D3 - D6, their audience was different from the average Lem consumer who just wanted to endless buy and re-buy the last marketed plastic toy (even if maliciously disguised into something different, like the dummy Df). Too bad for them.