Nikon joins the fun: YAY RECESSION!

Nikon Profits Fall

Last week it was reported that Canon’s 2008 profits tanked, specifically the most recent fiscal quarter* (Q4) to the tune of 91%. As most likely expected, Nikon has followed suite. The simple fact is that the rough economy is hitting everyone right now and our camera manufacturers are no different.

Nikon, the second largest (behind Canon) manufacturer of consumer and professional camera equipment, has announced that it is reducing it’s 2009 profit forecasts. They attribute the likely drop in sales to a reduction in camera sales and the weakening Dollar. Nikon stock dropped 73% in 2008 and it continues to drop as the global market continues to struggle. Despite producing the best camera’s they ever have, Nikon suspects that DSLR sales will drop around 6%. On a whole, Nikon suspects that digital camera sales globally will drop as much as 11%. Thus, Nikon profits, which dropped 98% in 2008, will likely continue to fall in 2009. As a result, they have “temporarily” laid of 800 employees, a number which could very well grow.

What does all this mean to us? One has to wonder how much money is being cut around these camera manufacturers. The ramifications of reduced budgets may mean delayed production in new model lines or improvements over old ones. In the meantime, i guess the only thing we can do is take photographs.

*Canon’s fiscal calendar aligns with the calendar year, thus Q4 includes September-December.