Overall demand for SLR cameras and
interchangeable lenses remains strong
􀀗 Demand for fixed-lens models appears
to be slowing down, with close to zero
growth in the value of sales in February
􀀗 We are Neutral or Neutral (V) on most of
the stocks in our coverage, but rate
Samsung Techwin Overweight (V) and
Olympus Overweight
Growth led by Japan and Asia
CIPA data for February shows total shipments of Japanese
digital cameras up a nominal 26% year-on-year in unit terms
and 18% in value. Shipments of SLR cameras were up 24%
in units and 39% in value. Interchangeable lens shipments
were up 27% in units and 39% in value. When adjusted for
the addition of Kodak to the database, we estimate that
shipments of cameras with built-in lenses were up only
13.5% in unit terms and less than 1% in value.
The data shows demand for digital SLR cameras relatively
weak in Europe and North America, but very strong in Japan,
Asia and Other Regions. Unit demand for interchangeable
lenses was slow in Europe, but the value of shipments was up
everywhere but in Other Regions. In our estimation, digital SLR
sales are most likely dominated by entry-level models in the
BRICs (minus China) and other developing economies, while
consumers move up-market elsewhere.
At present, we cover seven digital camera makers: Nikon,
Canon, Olympus, Sony, MEI and Casio in Japan, and
Samsung Techwin in Korea. We rate Samsung Techwin
Overweight (V) and Olympus Overweight, with one-year
upside potential of 35% and 22%, respectively, including
dividends. All the others are rated Neutral or Neutral (V).