Nikon announces end to film camera production

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[Industry News]

20 January 2006

Nikon Inc. has announced the company will no longer manufacture film cameras. Following the announcement, industry analyst Paul Worthington was quoted in The Washington Post as saying the announcement was noteworthy, but not surprising.

Specialty store retailers in the US agreed. "The move by Nikon wasn't a surprise," said Chris Lydle, owner of Chris' Camera Center South, Aiken S.C. "I expected it. Everyone expected it." The shop carries a small number of film cameras, both point-and-shoot models and SLRs. "There are a number of people who still want film cameras, but that isn't to say that it's in the best interest of a manufacturer to keep making them," Lydle explained to PMA Newsline.

The Nikon press release stated that the company will continue to manufacture its flagship F6 professional-quality SLR, as well as the FM10 SLR, an entry-level camera for students and dedicated amateurs.

Also being discontinued are Nikon enlarging lenses, large-format lenses, manual-focus Nikkor interchangeable 35mm lenses (the 85mm f/2.8D Micro-Nikkor, excepted) and accessories. A small number of lenses for the two remaining SLRs will continue to be made. Nikon will also continue to service its discontinued products for a period of 10 years from the last date of sale.

The press release was without attribution, and as of last Thursday, a Nikon spokesperson told PMA Newsline that Nikon would not be issuing any information beyond what was on the press release or any interviews for attributed quotes.

Lydle told PMA Newsline he will probably carry film cameras from other manufacturers, such as Canon, Konica Minolta, and Olympus until they are no longer available. "It offers an opportunity to specialty shops, because as the number of film cameras decline, we can offer more to our customers than any of the big-box stores," he said. "Film cameras are going away, however, along with film. It can be a bit sad, but I won't be shedding a tear."

The camera repair industry, too, has been affected by the rapid adoption of digital cameras. It seems ironic that Nikon should be the first major manufacturer to drop almost all its film cameras because the company has an outstanding reputation among independent repair shops for its commitment to assist them with parts, documentation, and training.

"Nikon is absolutely wonderful," said Daniel Scheerer, Focal Point Camera Service, Fort Wayne, Ind. "At least twice a year Nikon invites all Nikon factory-certified technicians to its New York facility to enable us to learn about their new products."

As film cameras disappear, however, so too, do profitable and frequently seen repairs, such as those made to film-transport mechanisms. "Yes, some repair jobs are being lost, but they are being more than made up for with repairs to digital cameras. We are not being hurt by the decline of film. Digital cameras have been very good for our business," said Scheerer.

Given the speed with which new digital cameras appear, not to mention the speed with which prices drop as features increase, one might think that many consumers would rather just buy a new camera than go to the trouble and expense to have their old cameras repaired.

"The customer's decision depends not only on repair costs, but also how much the person likes the camera," he explained. "Most often, if a customer has a decent $200 digital camera, we can convince him that it is worthwhile to repair. "Digital camera repairs now total roughly 80-85 percent of our business, and for an operation like ours, the initial cost of digital diagnostic equipment wasn't a problem and quickly paid for itself. Nikon made an excellent decision. I wish they had made it three years ago."

It's a sentiment that resonates with Michael St. Germain, owner of Concord Camera Store, Concord, N.H. "Nikon made a smart move. I saw it reported in The New York Times that film cameras accounted for just three percent of their business. It's time for them to stop kicking a dead horse," St. Germain explained. "Digital technology offers specialty shops so many things that we could never do before. We need to concentrate on making the most from the new opportunities that digital technology gives us. "Just this week a customer brought in his 1GB cards and we made 1,100 prints for him at 25 cents each. He had his images put on a DVD. The master should run about $250, plus $25 each for two copies. He ordered six mounted posters, and he likes to have his posters framed." By Larry Thall, PMA senior editor

http://www.nikon.co.uk