With the rise of computers, tablets, and cellphones all capable of taking high quality pictures, it is a terrible time to be in the digital camera industry. Olympus hasn’t been able to generate a profit in the last three years and this year’s forecast doesn’t look much better. The camera company predicts that a trend of falling sales will continue, down from 5.1 million units to 2.7 million units for the year.
Furthermore, Olympus wants to focus on SLR cameras. Though a wise idea in theory, sales of SLR cameras only made up only 35% of its imaging business last year, whereas compact cameras, its largest segment, will have to be slashed in half to make up for this strategy. The company holds some nostalgia with consumers, having once been the official sponsor of the internationally known New York Fashion Week in Bryant Park, but this alone will not save it.