Konica Quits Camera Operations; Sells Digital SLR Assets to Sony
January 26, 2006
Konica recently announced it plans to end its camera and photo operations starting at the end of March 2006, because profits generated from these areas have been deemed insufficient by the company. Instead, Konica will focus on products such as copiers, printers, medical equipment, and display devices.
Konica will sell part of its single-lens reflex digital camera R&D and manufacturing assets to Sony. Sony currently focuses on compact digital cameras, but this product segment has been hampered by falling prices. Single-lens reflex digital cameras enjoy high profit margins, and by acquiring Konica's assets Sony wants to strengthen its position in the digital camera market, which is led by Canon. Financial details of the deal were not disclosed.