Nikon Group, which is the parent company of Nikon USA announced today that it will be cancelling the anticipated DL camera line, amid “extraordinary losses” in the first three quarters of 2016, and upcoming losses in 2017. Nikon have announced that their are in the midst of “shifting from a strategy pursuing revenue growth to one pursuing profit enhancement.” The company stated a loss of around $262M USD more than the originally forecast los, bringing the total loss for the three-month period to near $500M USD, with more losses anticipated for the end of their fiscal year in March 2017.
The upcoming losses are thanks to a “Solicitation for Voluntary Retirement” which is a program allowing workers to retire early to save on long-term employee costs. Nikon’s revised financial forecast for March 31, 2017 is available on the Nikon site.
The DL camera line had been announced as a competitor to the high-end compact digital camera market, which includes Sony’s RX100 V. The expected release date had come and gone, leaving many to wonder what the fate of the premium compact camera would be.
Regarding the cancellation of the DL series of cameras, Nikon issued a press release, which is below.
TOKYO – Nikon Corporation announced today that sales of the long-awaited DL series of premium compact camera, the DL18-50 f/1.8-2.8, DL24-85 f/1.8-2.8, and DL24-500 f/2.8-5.6, will be canceled.
A June, 2016 release was originally planned for the DL series. However, with the identification of issues with the integrated circuit for image processing, release of the three cameras was delayed indeterminately.
Since then, everyone involved has worked very hard to develop products with which our customers will be satisfied. However, it has been decided that sales of the DL series will be canceled due to concerns regarding their profitability considering the increase in development costs, and the drop in the number of expected sales due to the slow-down of the market.
We sincerely apologize to all those affected by this decision, especially those customers who waited so long for the cameras to be released, retailers and others whose business will be affected, for the inconvenience this decision may cause.
There is no immediate indication as to how this “extraordinary loss” will affect Nikon’s other camera lines, and what effect the loss and restructuring will have on future products.