Most of the profits are coming from sales of their SLR (single-lens reflex) digital cameras, which Nikon now sits at the top of in market share.
Canon Inc. increased sales in both compact and SLR digital cameras, but Nikon focused solely on the SLR models because of high margins.
Nikon has two models of its SLR camera and expects sales to be up 49% on the year.
Additionally, the weaker yen to the dollar exchange rate will add to the profits of the camera maker.
Instead of getting 110 yen to a dollar on a camera, Nikon's assumed foreign exchange rate, the company will get more than 120 yen to the dollar, increasing earnings by around 5 billion yen.
High margin product. Low competition. Overseas market with favorable exchange rates = smart business.
What do you think?
Comment Preview