Nikon And Canon Declining In 2012

The market is quite shocked when Nikon Corp., Japan's third-biggest camera should cut its business performance. Nikon's stock price yesterday in Tokyo fell 19% to ¥ 2,139 per share.

The decline was the biggest since 1985, Nikon floor earlier. Nikon also led the biggest decline among the members of the Nikkei 225 Stock Average.

Nikon Management estimates annual net income at the end of the fiscal year, as of 31 March, the possibility of ¥ 38 billion (U.S. $ 407 million). Nearly half the company's projection is lower than the market forecast to reach ¥ 60 billion.

"It's a negative surprise. Nikon takes one or two quarters to prove to increase selling prices and margins back," said Hisashi Moriyama, an analyst at JPMorgan Chase & Co.

The Tokyo-based company said, the price of digital single-lens reflex (SLR) entry level, or that can be used by beginners, continued to fall since November last year due to slowing demand and fierce competition.

Not only competing with its rivals, Canon Inc, Nikon and other camera manufacturers currently rely on high-end camera with a lens that can be exchanged, to maintain market smart phones switched on the camera and pressing demand for pocket cameras.

Anti-Japanese in China

Nikon estimates that 7 million units sold SLR camera for a year until the end of March, lower than previously estimated 7.1 million units. Sales of the lens is also lowered to 9.8 million units from 10 million. Meanwhile, 17 million units of compact cameras.

"Demand in Europe began to slow and businesses in China's anti-Japanese, worse than expected," said Junichi Itoh, Director of Finance Nikon. The company announced net profit for 9 months through December amounted to ¥ 32.33 billion, down 30% from a year earlier.

Camera sales value, according to the Camera & Imaging Products Association in Tokyo fell 14% year-on-year as of November last year. Delivery of high-end models also record down 12%.

Canon recorded a decline in operating profit of 17.9% in the three months to December, to ¥ 77.7 billion (U.S. $ 857 million). However, the company is relying on sales of fax machines and printers is sure to grow 14% in 2013, supported by a weaker yen and China reduced the negative sentiment towards Japan.