He is NOT a financial analyst.
This is a classic case of looking at a single data point, without regard to the environment.
You cannot look at Nikon in isolation.
You have to also look at Canon, Sony and the entire photo industry. And the entire economy.
Only at almost the very end did he say that Canon and Sony are in the same boat, but of course showed no numbers for them. Is Canon also going to abandon the consumer market?If you think Nikon is in trouble, think about the airlines and the travel industry. Who of you has even been in a plane in the last few months? In that comparison, Nikon isn't doing too bad.
The numbers that he is pontificating about has the COVID pandemic as a major reason for the small numbers.
He talks about "impairment loss" as if he is an expert. IMHO, he does not know what he is talking about.
- If I can't travel on vacation, I won't buy the photo gear that I had planned to buy for the vacation.
- Most schools cancelled their graduation ceremony this year. So people did not buy the camera they were going to get.
- If my nephew's wedding is postponed or turned into a small civil wedding, I won't buy the photo gear that I might have.
- etc. etc. etc.
He said "Impairment loss is basically the depreciation of equipment."Not really. He did not do his research.Impairment vs. Depreciation "Fixed assets, such as machinery and equipment, depreciate in value over time. The amount of depreciation taken each accounting period is based on a predetermined schedule using either straight line or one of multiple accelerated depreciation methods. Depreciation schedules allow for a set distribution of the reduction of an asset's value over its entire lifetime. Unlike impairment, which accounts for an unusual and drastic drop in the fair value of an asset, depreciation is used to account for typical wear and tear on fixed assets over time."His poor financial statement "analysis" so disgusted me that I did not want to listen to him.
IOW click bait.
Now some of his thoughts about leaving the consumer market kinda make sense, until you think about it more.
How do you get the amateurs to buy the high end gear, if you abandon the consumer market? Many amateurs start in the consumer market, then upgrade to the amateur market.
Do you really expect people to go straight from an iPhone to a D850 or Z7?
I kinda agree.I didn't pay any attention to Cristina's discussion about impairment vs. depreciation. That isn't meant to be a smart-aleck comment. I just didn't think it was germane to what Nikon is going to have to do to stay in business.
With that caveat or excuse, I think Cristina was spot on about where Nikon is going to need to put its focus in the future and where they are headed, i.e., hobbyist and pro cameras and lenses. They just have to go in that direction. The cameras in the phones are just sucking up the general consumer camera market at a dizzying pace. The output they give you for general photographic snapshots goes from good to really good. I think that the key issue you raise is what does the bridge look like for people who want to go from camera phones to more sophisticated types of photography. I think that successful bridge camera bodies are going to be critical to camera companies success for the future. Additionally, I also think that camera companies need to make a persuasive case that their cameras and lens can capture images that you just can't get with phone cameras. I hope that Nikon is looking at this issue because, at least from my perspective, they really need to improve their advertising.
Apple is in an almost unique position of having a cult-like following.You want a successful product strategy?
Where is apple’s entry level and mid level consumer laptop and desktop segment?
They exited the market and left it to HP, Dell, Lenovo, Acer and others to fight.
They ignore market share and focus on profitability and vertical manufacturing integration as well as horizontal ecosystem integration.
It takes a bold visionary leadership team to bring in these changes.
Not in the Japanese culture.
Yes, growing up with a computer, some of the high school kids are much more adapt at photo editing than me.Yes, and a new generation of digital users born with these devices have developed some amazing video editing skills, photography is a reflex.
Their composition skills are also amazing.
The system of lenses and flash units that are fully operational only with a particular line of camera bodies certainly constitutes an ecosystem. It's not nearly as large as the Apple ecosystem but a lot larger than that of many other consumer product categories.camera manufacturers have zero ecosystem
It is more an accessory range than ecosystem.The system of lenses and flash units that are fully operational only with a particular line of camera bodies certainly constitutes an ecosystem. It's not nearly as large as the Apple ecosystem but a lot larger than that of many other consumer product categories.
Of course it's not equivalent; Indeed, I explicitly mentioned that.This whole scenario is a rather different setup and not equivalent, really, to that internally-based system which has been established by Apple and referred to as its "walled garden," its ecosystem.