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Mass market targeted compact cameras have escaped a price rise.
Faced with the pressure on margins, digital camera-makers such as Nikon and Canon have instead passed on their rising production costs to professional segments.
Both, Canon and Nikon confirmed that price hikes have not been initiated in the compact camera segments. From June, Canon initiated a flat five per cent hike across all its six digital SLR (DSLR) models and other peripherals in the country. Nikon has introduced a 10 per cent hike for three of its high-end DSLR models priced between Rs 1 lakh and Rs 3.5 lakh.
The compact camera range starts at Rs 4,500 and goes up to Rs 23,000 across brands, while DSLRs are priced between Rs 30,000 and Rs 4 lakh.
“Compact camera sales have been poor in the first five months. This has resulted in the segment not witnessing a price rise and makers willing to taking a hit here,” Mr Alok Bharadwaj, Senior Vice-President, Canon India, told Business Line .
Margins
Dependent primarily on imports for their offerings, camera-makers' margins have been hit by at least 8-10 per cent, following a near 24 per cent depreciation of rupee. (The rupee was Rs 44.36 to the dollar in early May and at Rs 56 on June 6.)
“The rupee depreciation is killing and competition is not allowing a hike in prices,” a Nikon official said on conditions of anonymity.
To make matters worse, compact camera sales growth has slowed down. In the first five months, there has only been a 15 per cent growth as against the expected 30 per cent.
Price Review
Canon said it was likely to review its compact camera prices ahead of the festival season beginning September. Nikon was mulling a price hike if the slide continues.
According to Mr Masaru Tamagawa, Managing Director, Sony India, the company has hedged the currency by booking the exchange rate amount till June.
“We have no plans to increase the price of products till then (June). However, from July onwards, we will observe the exchange rate and determine the price,” he said in an e-mailed response.
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