A Fujifilm employee has officially announced that the Japanese company is going to kill about 50% of the compact camera lineup, in order to focus on higher-end X-mount models.
Olympus has been the first digital camera maker in the world to announce that it is scrapping its bottom compact camera line. The V-series will no longer be manufactured by Olympus, which has revealed that the demand for under-$200 devices has dramatically dropped in recent years.
Fujifilm to “kill” low-end compact camera lineup following poor customer demand
This will most likely become a trend as Fujifilm has also revealed that it is planning to reduce investments in low-end compact cameras. Entry-level shooters are no longer wanted by consumers, said Hiroshi Tanaka.
Fuji’s general manager went on to say that low-end models also have a very low profit margin, therefore there is no single reason to continue manufacturing them. Tanaka added that the company will actually halve its entry-level compact camera series, meaning that more than 20 models will be discontinued and will not be replaced by other units.
Fuji will merge the digital camera and optical device businesses to reduce costs
The announcement has been made in the popular Japanese newspaper, called Nikkei. Tanaka has also confirmed that Fujifilm is merging the digital camera and optical device lineups. This decision will cut down costs by up to 10%.
Furthermore, the Japan-based manufacturer might ramp up the production of cameras in the Philippines. Most parts for optical devices and camcorders are made in that facility, and the merging of the two businesses should allow Philippines workers to start making digital shooters, too.
Consumer demand for higher-end X-Trans cameras has been “overwhelming”
The company is also “overwhelmed” by the consumers’ reaction to high-end X-mount cameras, such as the X-E1, X100s, and X20. Adrian Clarke has confirmed that Fujifilm did not expect such levels of enthusiasm for X-Trans cameras and X-mount lenses, therefore the company will focus on these products.
The shooters have already attracted positive reviews from photographers and digital imaging experts, making Fujifilm Europe’s senior vice president to claim that the company can finally “get back to real photography”.
Fujifilm expects the quarter ending March 31, 2014 to be a profitable one
Moreover, the Fujifilm Imaging Solutions business is expected to return to profitable ways by the end of March 2014. Previously, the predictions were far worse, but the higher-end mirrorless segment has been kind to Fuji and everything will sort itself out in the end.