When was the last time you picked up a compact camera? I’ve got one sitting in my drawer beside me (the Sony DSC-HX5V that I reviewed all those years ago) and it’s been there for the better part of 2 years, not seeing the light of day. I’d hazard a guess that everyone has at least one digital camera lying around their house somewhere that simply doesn’t get used anymore and it doesn’t take a genius to figure out why. When the picture quality of your smartphone is comparable to your pocket cam there’s really no reason to bring it along, even more so when your smartphone has all those convenient options for sharing them instantly. With that in mind it seems a little odd that the major camera manufacturers still bother making them as it seems clear where the future of that segment is.

Canon and Nikon

Indeed if you check out the recent financial results of both Canon and Nikon they both cite the lagging sales in compacts as a contributing factor to their recent decline in sales and profit. It’s not just isolated to them either, pretty much everyone in the camera business has been hurting recently and it seems to be all directly related to their continued presence in the compact market. Now I’m not saying that this market needs to disappear completely, there’s still people out there to sell them too, however when your bottom line is having an axe taken to it because of one particular product line it’s time to rethink your presence there. Indeed when the major player’s interchangeable lens system cameras are doing so well in comparison it seems inevitable that this is the direction they should take, although some would think otherwise.

Nikon’s president Makoto Kimura doesn’t want to abandon this sector and instead wants to “change the concept of cameras”, potentially with a non-camera device. As some analysts have picked up on this sounds an awful lot like they might be trying to enter into the smartphone market somehow but in all honesty that’s the last thing they should be doing. If Nokia’s attempt at bringing better camera technology to the mobile platform is anything to go by then I can’t imagine Nikon’s going much better, especially considering the luke warm reception their Android based pocket cam received.  It would be far, far better for them to simply drop the whole sector together and then refocus their efforts on further improving their mirrorless and DSLR ranges which will always have a strong market behind them.

I’m not advocating that they just straight up stop making them, there’s still a bit of money to be made here, but it’s obvious that even super cheap compacts aren’t enough to pull consumers away from their smartphones. Instead they should gradually taper away their involvement in the area, reducing the number of models they produce significantly. It’s very possible that there’s a sustainable niche in there somewhere which could support a couple models and reducing the available product lines would show that. If they became unsustainable then it’d be time to drop that area completely and then put those resources to use in their other imaging sections. There’s also the possibility of licensing out their technology to smartphone manufacturers in order to get at some of the action that they’re currently missing out on although whether any of their tech is applicable is an engineering question I can’t answer.

This isn’t necessarily a bad thing for compact makers, all it means is that part of their market has been eaten away by technological advancements in other fields and it’s time for them to adapt. I think they’re all well placed to whether this change as their businesses outside their compact range are all strong, even growing in most cases. Whilst the loss of the compact sector won’t necessarily mean a boost to the DSLR/mirrorless sector it will mean they’re spending less money on a shrinking sector, something which seems like smart business sense. Hopefully they take this path sooner rather than later as I’d hate to see my favorite camera manufacturer suffer unduly because of it.

About the Author

David Klemke

David is an avid gamer and technology enthusiast in Australia. He got his first taste for both of those passions when his father, a radio engineer from the University of Melbourne, gave him an old DOS box to play games on.

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