Wednesday, October 2, 2013
Panasonic Mulls Outsourcing Some Digital Camera Production
TOKYO (Nikkei)--Panasonic Corp. (6752) is considering outsourcing production of certain compact digital cameras for the domestic market rather than producing them itself. With competition increasing from other makers' products and from smartphones equipped with advanced camera features, Panasonic aims to increase its profitability by lowering costs. Low-end models priced at 20,000 yen or less are expected to be outsourced.
The company forecasts digital camera sales for fiscal 2013 will come to 5 million units, down 19% from the previous fiscal year, with low-end models accounting for about 30% of the total. Panasonic is currently producing such models for the domestic market at its plants in Fukushima and China.
Panasonic will focus on producing high-end compact digital camera models sold for 30,000-40,000 yen and mirrorless single-lens models.
(The Nikkei, Oct. 2 evening edition)