"Extraordinary Losses" for Nikon

Peeb · Feb 13, 2017

Nikon cancels DL compacts amid 'extraordinary' losses

astroNikon · Feb 13, 2017

They had way too many camera lines anyways.
and this line of cameras has been delayed since they mentioned it and had prototypes.

Though it's a lot of R&D thrown away, hopefully management will get out of the Supply model and get more towards the Demand model and shuffle their lineup to meet demand with the features and functionality that consumers want, from bottom up.

astroNikon · Feb 13, 2017

I forgot to ask .... who's buying Nikon again ??

jcdeboever · Feb 13, 2017

Peeb said:
Nikon cancels DL compacts amid 'extraordinary' losses

Not surprised. Look at Fuji, they seem to listen to their customers. Nikon seems to think they know whats better for the customer or that is what it seems like to me. I'm trying to be objective as I think Nikon makes some fine cameras. BUT.....

When I called Nikon on my D7200 focus challenges, they told me I had to custom focus calibrate each lens and at all the focal lengths if a zoom. I was like, you got to be kidding me? They were very proud of that feature apparently. They really lost my faith on that phone call and forced me to seriously consider a system change. A good friend is sending me a fujifilm camera to try before I do a fire sale and lose my a**.

astroNikon · Feb 13, 2017

I just read the NikonRumors article on this.
Nikon cancels all three DL cameras because of “profitability concerns”, no word on future development | Nikon Rumors

You always wonder about profitability.

What they designed, three separate times was 3 separate small cameras based on ONE sensor.

You can visually tell that they do not share many parts. The bodies are totally different, etc. They may share some internal circuit boards but one won't know that until they did a tear down.

Nikon does this a lot. The D7000 to the D7100 was a total reengineering if you look at teardowns. Even the D600 which some said was the same camera as the d7000 upon a teardown is a totally different camera.

At some point they're going to have to not change the body each and every time and just have some blank space if they end up with smaller circuit boards. Just to spread the development costs, if at least on part of the development, over a longer period of time.

I think the only shared consistent part between the DSLR cameras is the metal mount, maybe a few thumbwheels, and other small parts. One would have to see part lists for all their cameras.

Since the 1970s and before Japanese industry has done their mathematics based on "if you build it they will buy" thus they will build xx amount and hope they all get sold ... sooner or later. The problem is with automation, economies of scale for purchasing the internal parts, one ends up having to product xxx amount anyways to get to a break even point in manufacturing of the product, and hope that the sales follow.

It's good to see them stop production of a product before they make it, looking at forecasts based on the ever decreasing mid-sized camera market. It will hurt their bottom line in restructuring and lost R&D but hopefully better for the long run.

A lot of these smaller cameras compete at the low end of the DSLRs. I was amazed at how compact the D5500 was compared to the P7800 I had. It was larger but not by much excluding the lens.

Derrel · Feb 13, 2017

$649,$849, and $999-those were the announced price points for the three DL models.

As a former camera salesman (photo and video) I can tell you that THOSE types of price points would have always been tough. Eight fifty, six fifty, and one thousand dollars--without accessories, mind you. Those are tough price points for a compact camera. And having three expensive products in one category, from one manufacturer, that would additionally complicate both inventory for dealers, and mental confusion for customers, and for sales folk trying to leverage one Nikon premium-compact camera against another.

As astronikon said, " It's good to see them stop production of a product before they make it, looking at forecasts based on the ever decreasing mid-sized camera market. It will hurt their bottom line in restructuring and lost R&D but hopefully better for the long run."

Had Nikon forged ahead with these three premium-compact models, the end result would likely have been a massive FAILURE--like say, the Ford Edsel was...one of the all-time greatest sales flops in history. The camera market has slowed wayyyyyy down, and the idea of $649,$849,and $999 super-premium NON-interchangeable lens cameras being a profitable segment for Nikon just does not make much sense. For a huge corporation like Sony, with its ties to the name "Zeiss", or for a luxury/snob-appeal/status brand like Leica, these price points would very well be justifiable, but Nikon is neither Sony, nor Leica.

$649,$849, $999--those are price points that the majority of consumers expect to pay for an ILC, or interchangeable lens camera from a company like Nikon, and I think Nikon realizes that, with the camera market in steep decline, it's cheaper to cut and run, rather than launch production of the next Ford Edsel line.

PropilotBW · Feb 13, 2017

Ehh..wouldn't have purchased it over a Nikon DX/FX I much prefer the well-established Olympus/Panasonic for smaller premium compact cameras.

astroNikon · Feb 13, 2017

Derrel said:
$649,$849, and $999-those were the announced price points for the three DL models.

I forgot about those price points.
For someone getting into photography why would they buy a DL versus a new d3400, d5500 or even a d7200, or a sale of the older version d7100

Right now BestBuy is having a sale of the D7100 w/18-140 lens for $999.
Yes, that probably left over unsold inventory of when they cutoff to the D7200 on March 19, 2015 ... nearly 2 years ago.

pixmedic · Feb 13, 2017

astroNikon said:
Derrel said:

$649,$849, and $999-those were the announced price points for the three DL models.

Click to expand...

I forgot about those price points.
For someone getting into photography why would they buy a DL versus a new d3400, d5500 or even a d7200, or a sale of the older version d7100

Right now BestBuy is having a sale of the D7100 w/18-140 lens for $999.
Yes, that probably left over unsold inventory of when they cutoff to the D7200 on March 19, 2015 ... nearly 2 years ago.

fuji's prices for their single lens systems are along the same price point, if not higher.

Derrel · Feb 13, 2017

Yeah, NOS...New Old Stock...
Nikon cameras and Canon and Sony cameras that have been officially discontinued continue to be for sale in multiple markets. As the camera market slows down, it's something we have seen--that older, discontinued camera models are the actual TOP sellers! This seems especailly true in the entry- and mid-market categories.

Derrel · Feb 13, 2017

pixmedic said:
fuji's prices for their single lens systems are along the same price point, if not higher.

Different brand identity, world-wide. Nikkkk-own, Neee-con, N-EYE-con...an old, stodgy, small, almost-entirely-imaging company... ...Fuji...the colorful picture people with the hobby camera business backed by the large corporate parent and the cool retro-styled cameras....SONY, the HUGE corporate parent that failed to turn a profit in seven years, but which has a consumer electronics name with wide fame...Leica...the luxury brand that dates to the 1930's...

Looking at total sales, Canon and Nikon dominate world-wide, and alllll the other players have tiny,tiny little camera sales numbers. Olympus sold like 500,000 cameras all of last year. Fuji is a niche market player with a very desirable brand identy that is VERY new in the camera biz, and they have good products, and respond to customers. Nikon? Not the same new kid on the block, and a history of being indifferent to customers.

A great example of brand identity leading to failures: the tiny Cadillac Cimmaron car...NOBODY wanted a small Cadillac...a huuuuge failure, because the brand identity meant a BIG car.

The premium-priced compact market already has players:Sony, Fuji, Panasonic, Olympus, Leica. I think Nikon realized that their sales of compacts have declined so,so,so much that it would be better to just muck this hand, and wait for the next deal!

cgw · Feb 13, 2017

The decision to $hit-can the DL line might well indicate Nikon is coming around, however belatedly. Problem remains the time and resources squandered on it. Expect more big write-downs this fiscal year. It's going to be messy and will dent the brand's image but has to happen. Suspect Nikon will be a smaller company a year from now. Guess I'm romantic but still hold out some hope the anniversary year will be less about financial statements and more about some stunning new products.