Samsung NX3000 Canon PowerShot G7 X Nikon Coolpix S6900 Panasonic Lumix ZS40 Canon PowerShot SX700 Sony CyberShot HX400V
Samsung NX3000 Canon PowerShot G7 X Nikon Coolpix S6900 Panasonic Lumix ZS40 Canon PowerShot SX700 Sony CyberShot HX400V
  News Headlines Apple Canon Casio Fujifilm HTC LG Nikon Nokia Olympus Panasonic Pentax Ricoh Rollei Samsung Sony  
Lets Go Digital
Powered by True
Counted by
Sanyo cuts digital camera production costs
Ilse Jurriƫn : July 12th 2005 - 00:40 CET
Digital Camera Review Test Appareil Photo Numerique Prueba camara digital Digitale Camera Test Dijital Kamera Incelemeleri Digitalkamera Test Digitalkamera
SanyoSanyo cuts digital camera production costs : Struggling Japanese electronics maker Sanyo Electric Co. Ltd. said on Monday it was making big strides in cutting digital camera production costs and was on track to hit its output target for this year. In an interview with Reuters, Morihiro Kubo, head of the company's camera division, also unveiled plans to double sales of its own-brand cameras by increasing output of its "Xacti C" series that can take both still pictures and video. Sanyo is one of the world's largest producers of digital cameras, but it supplies about 95 percent of its output to other companies such as Nikon Corp. and Olympus Corp. under original equipment manufacturer (OEM) agreements.
Sanyo cuts digital camera production costsCompetition is getting tougher
"There is no question that competition in the digital camera market is getting tougher and we have to strengthen our cost structure," Kubo said at the company's digital camera factory in Daito City in the western prefecture of Osaka. To that end, Kubo said Sanyo has been raising the ratio of overseas procurement, shifting production to countries where labor costs are lower and accelerating development to deliver products to its customers faster.

Digital camera business
While digital camera operations are still one of Sanyo's more profitable businesses, profit margins have come under pressure recently because of sliding prices, slowing market growth and troubles at some of its main customers. Olympus, for example, fell deep in the red last business year and recently announced it would cut 4,000 digital camera jobs.

Sanyo cuts production costs by 30%
Sanyo now makes over 90 percent of its cameras overseas at factories in Indonesia, China, South Korea and Vietnam. It plans to triple capacity in Vietnam to 3 million units by 2006/07, and ramp up to 5 million in 2007/08, Kubo said. "We are aiming to cut (production) costs by 30 percent with models coming out this fall compared with those launched in spring last year," Kubo said. "We have to cut costs by that much to keep up with price falls in the market."

Sanyo started selling digital cameras under their own brand in 1998
Kubo said he would like to raise sales of Sanyo's own branded cameras to 10 percent of its total in the future. The "Xacti C" series is the best way to achieve this target because it leverages the company's strong video technology, he said. "When we really started selling digital cameras under our own brand in 1998 we did so with models that could capture moving pictures," Kubo said. "That allowed us to put out a product that was different than what we were supplying to our OEM customers."

Sanyo - Future perspective
It plans to sell 300,000 of the combination video/still cameras in 2005/06, double the previous year's total and grabbing about 30 percent of the global market, which is expected to grow rapidly over the next several years. Kubo stood by the firm's target to produce 13 million units in the 2005/06 business year, up from 11 million in 2004/05. Some analysts have warned that Sanyo would fail to hit that target, first unveiled in April, due to weak market demand. "So far things are progressing in line with our plans." Sanyo does not give a breakdown for profit in its digital camera division and Kubo declined to comment on whether profit margins had improved or declined. But Goldman Sachs predicted in a recent report that the division would post an operating profit of 3.2 billion yen this business year, less than half the 7.0 billion yen of 2004/05. Sanyo said last week it would cut 14,000 employees, or about 15 percent of its global work force of 96,000, shutter domestic factories and halve debt in a sweeping restructuring designed to return the company to profitability. Kubo declined to comment on potential restructuring steps in the digital camera business.

   Olympus Europe corporate reorganisation
   Olympus shares fell after news about cutting jobs
   Konica Minolta UK announces internal restructure
   Next  HP Photosmart 8250 home photo printer
   Previous  HP Photo Packs at the lowest cost per print!
   News by brand:Sanyo
   News by category:Source of Information
   News by brand and category:Sanyo Source of Information
   Canon EOS 700D - $509.00
   Nikon D7100 - $649.00
   Nikon D5300 - $695.04
   Sony Alpha 6000 - $499.00
   Canon EOS 70D - $749.00
   Sony CyberShot DSC RX100 III - $649.00
   Canon PowerShot G1 X Mark II - $549.95
   Samsung NX300 - $499.99
   Panasonic Lumix DMC LX7 - $
   Nikon D3300 - $

LetsGoDigital digital camera magazine
Latest Sanyo announcements
Sanyo Zio mobile phone
Sanyo E1500TP
Sanyo S1414
Sanyo T1495
Sanyo Xacti PD1
Sanyo underwater camera
Full HD projector
Sanyo HD projector
Sanyo Xacti GH1
Sanyo Xacti CG100
Sanyo Wide XGA projector
Sanyo Incognito
Sanyo Xacti CS1
Sanyo Xacti SH1 Dual camera
Sanyo sound recorders
Twitter LetsGoDigital
Latest news headlines
Samsung Galaxy S6 edge accessories
BlackBerry Leap smartphone for 4G LTE networks
Microsoft Lumia 430 Dual SIM
Microsoft Lumia 640 XL
Microsoft Lumia 640
Olympus Stylus SH-2
Samsung Tizen Dual-SIM smart phone
Microsoft Lumia Windows smartphones
Canon PowerShot ELPH 170 IS
Canon PowerShot ELPH 160
Nikon D7200 video functions
BlackBerry Leap
Nikon D7200 digital SLR camera
Canon EOS Rebel T6s
Canon EOS Rebel T6i
  Accessories Android Apps Camcorders Digital cameras Mobile phones Smartphones Software Tablets   CES CeBIT Gadgets IFA Photokina PMA