Nikon 2006 Annual Report Download - page 15

Performance Summary
Steady growth in digital SLR cameras during the year
ended March 2006 ensured a substantial increase in
sales of these products. In line with this, sales of inter-
changeable lenses also expanded signifi cantly. In the
compact digital camera market, Nikon launched its
“Performance (P) series” equipped with a high-preci-
sion Vibration Reduction (VR) system as well as other
exceptional functions. This new line complements the
“Style (S) series,” which boasts a slim, stylish design.
The affordable and easy-to-use “Life (L) series” was also
introduced during the year as Nikon sought successfully
to expand sales of compact digital cameras. Elsewhere,
efforts were made to strengthen capacity at produc-
tion sites and upgrade sales and service bases overseas,
and to integrate logistics functions in Japan and Europe.
Moreover, procurement innovation led to lower over-
all costs. As a result, segment sales increased 17.2%
year-on-year to ¥416,607 million and operating income
climbed 104.1% to ¥34,369 million.
Bolster competitive edge in the
digital SLR camera market
Nikon’s digital SLR cameras have proven popular with the
market, ranging from the D50 combining simple operation
with professional image quality even for beginners, to the
D70s with enhanced ease of operation and basic functions
and the D200 for professionals and advanced amateurs.
Sales of the high-end D2x have also grown, while Nikon
released its successor, the D2Xs, in the year ending March
2007. Through the creation of a database listing customer
desires and the active provision of minute fi rmware improve-
ment, Nikon aggressively seeks to improve and enhance its
products and services to meet the needs of a wide spec-
trum of digital SLR camera customers from professionals to
entry-level users. Going forward, Nikon will continue work-
ing to increase its competitive edge in the market.
Improve profitability of compact
digital cameras
Up until recently, the world of compact digital cameras
was characterized by competition to develop models with
image sensors with higher pixel-counts. Now that most
digital cameras incorporate such image sensors, Nikon
has the chance to display its true value as a camera
maker constantly in pursuit of all-round superior image
quality. Going beyond mere functions and features,
Nikon’s COOLPIX compact digital cameras have been
developed with consumer lifestyles and needs in mind,
with three categories to choose from: the Performance
(P) series, the Style (S) series and the Life (L) series.
Performance: For people wanting high performance,
including superior image quality and
diverse features
Style: For those with discerning taste for style
and design
Life: For users desiring simple operation and
affordable price
Categorizing the cameras like this further clarifi es
the attributes of the product, thereby creating a unique
image for each type of COOLPIX model. In particular,
the L series has been a hit in the United States and
Europe evident in strong sales volume growth, resulting
in a considerable improvement in overall profi tability of
compact digital cameras. Based on the basic concept of
the COOLPIX brand to integrate contemporary fi ne qual-
ity with intelligence, Nikon endeavors to create high-
value-added products that target specifi c user groups.
digital cameras,
fi lm cameras,
interchangeable
camera lenses,
fi lm scanners
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