Camera maker’s stock drops after company says it will be unable to get customers to buy the camera
Digital camera makers are selling off their digital camera business as their customers move away from them.
The drop in the shares of Olympus, which makes the Olympus OM-D E-M1 camera, and Fujifilm, which sells the Fujiflm X-T1 digital camera , is particularly surprising because the two companies have been inextricably linked for years.
The companies share a common core, and their products are widely used in the field of medical imaging.
Olympus and Fujis products have been used by hundreds of doctors, and each company has been profitable.
But Olympus and its OM-E2 camera has had a rough time lately.
The company said it was not able to get enough customers to order the camera, despite having a large lead in sales.
The reason: the company’s own sales have fallen since its most recent quarterly earnings report.
Olympus shares fell by more than 5 percent on Thursday.
In the past year, Olympus shares have dropped more than 15 percent.
The stock has been inching toward bankruptcy protection since October.
The move by Olympus, as well as the loss of Fujifu’s digital camera revenue, will hurt the company even more.
The Digital Camera Association, which represents digital camera makers, warned in a statement on Thursday that the stock market was in a bubble and that investors are “underrating the value of digital camera sales.”
The decline in Olympus shares comes just as a group of U.S. senators is pushing for a tax overhaul that would help companies like Fujifum and Olympus keep their jobs.
“The United States is a global leader in digital cameras, and our industry is in need of additional support,” said Sen. Amy Klobuchar (D-Minn.).
“As the world moves toward digital cameras becoming more and more commonplace, it is imperative that we have a tax system that provides tax incentives to help businesses like Fujis and Olympus grow.”