Nikon’s Future Isn’t Looking That Good Based on Financial Results

by planetMitch2 Comments

It isn't looking so good for our friends at Nikon!

Nikon's Year (Financial Results)

Via DSLR Bodies:

Here's the crazy corner Nikon is in: they can claim a modest 7% increase in operating income for the fiscal year that they just finished, but had far lower net sales and with restructuring costs had a significant loss. Nikon predicts that they'll recover to profitability next fiscal year, but with lower sales. They predict the imaging market will shrink, but they'll strengthen the profit of that group. The see saw is bouncing up and down. One end up, the other down, then that end up, the other down.

Most interesting is the way Nikon describes their restructuring process:

So at the moment, Nikon seems to be claiming that they're still doing re-assessment of cost structures while somehow “enhancing” management. Nowhere in that so-called restructuring plan do I actually see the word “implement,” as in “begin doing what we're talking about.” I'm sure that implementation has been active from the get go, but this plan, as presented, strikes me as too mild, too late.

I really don't like this: “Strategic direction for year ending March 31, 2018: Target a profit-structure able to sustain profit in a declining market. Create a midterm roadmap and initiate a fundamental review of costs.” Hmm, no wonder Nikon doesn't provide customer roadmaps: they don't have a complete one themselves.

I'm being harsh and snarky here. In a big business like Nikon, there's the large picture and the small picture. What we're discussing in terms of strategy is the large picture, where Nikon seems to be saying they aren't totally sure what they're doing other than further reducing costs. They've mentioned cost reduction almost every financial disclosure for the last decade, so what exactly do they really mean by “fundamental review of costs”?

In the small picture, I'm sure Nikon is still executing. But exactly what was that execution during the fiscal year they just reported? This:

  • Unannounced the DL series
  • Shipped the KeyMission series, which failed
  • Announced and shipped Coolpix A180, A300, D3400, D5600, none of which sold well
  • Announced the D7500

Which brings us to the ugly numbers for the Imaging group:

  • Net sales down 26% from 520b yen to 383b yen
  • Operating income down 39% from 45.7b yen to 27.7b yen
  • ILC cameras down 23% from 4.04m units to 3.1m units
  • ILC market share dropped from 31% to 26%
  • Lens sales down 22% from 5.9m units to 4.62m units
  • Lens market share dropped from 28% to 24%
  • Compact camera sales down 61% from 6.23m units to 3.19m
  • Compact camera market share down from 30% to 25%

Read full article at DSLR Bodies “Nikon's Year (Financial Results)”

text and images © 2017 Thom Hogan via

Note: it is our policy to give credit as well as deserved traffic to our news sources – so we don't repost the entire article – sorry, I know you want the juicy bits, but I feel it is only fair that their site get the traffic and besides, you just might make a new friend and find an advertiser that has something you've never seen before

(cover photo credit: snap from DSLR Bodies)


  1. Nikon could have made 10.000+x bucks through me alone in the past 2 years if they had released a D810 follow up with 4K and other basic improvements, or even better a mirrorless D810. A lot of money went to Sony and Panasonic instead.

    Nikon is sleeping. If they think it’s still the slow pace of innovation and competition of the last millennium, they are wrong and will see further decline. Nikon needs to start to give the people what they want, and start very soon, otherwise they will be maximum the #3 in the market for a very long time.

  2. Nikon is obviously stubborn., refusing to offer customers the true innovation that’s seen in Sony and Panasonic Mirrorless products.

    Just imagine if Nikon “implemented” no video record time limit, in Mirrorless, APSC and full-frame cameras, with features, functions and benefits Panasonic offers in their soon-to-be venerable LUMIX GH5 — complete with in-camera 10 and 12-bit 4:2:2 DCI Cinema 4K and UltraHD as well as 1080P 60 HD (with all video formats offering slow-motion but providing variable speed options for some of those record modes — all the while providing stellar still photography capabilities, then Nikon’s hitherto, well-deserved downward spiral would be reversed, and that, right quickly.

Leave a Comment