Giant Nikon shares dive on weak demand for digital cameras
AFPTOKYO -- Nikon shares plunged 14.29 percent Friday after the Japanese giant warned that compact camera sales were falling through the floor as consumers increasingly turn to picture-taking smartphones.
August 10, 2013, 12:08 am TWN
The soaring popularity of smartphones is crushing demand for point-and-shoot cameras, threatening the once-vibrant sector as firms scramble to hit back with web-friendly features and boost quality.
On Thursday, Nikon largely blamed slumping digital camera demand to explain a 72-percent on-year decline in its April to June net profit, while slashing its sales and profit outlook for the fiscal year to March 2014.
“The results are negative for Nikon shares as they came in below market consensus and sales for both its compact and mirror-less cameras were poor,” Yoshihiro Okumura, general manager for research at Chibagin Asset Management, told Dow Jones Newswires.