Janury 19, 2006
Konica Minolta, a major player for decades in camera and photo technology, has announced it's getting out of the camera business. The company said it is a victim of the fast-developing trend of digital photography.
"In today's era of digital cameras, where image sensor technologies such as CCD is indispensable, it became difficult to timely provide competitive products even with our top optical, mechanical and electronics technologies," the company said in a statement.
Konica Minolta produced Japan's first photographic paper in 1903, and Japan's first color film in 1940. In 1984, it introduced the world's first compact washless photofinishing system known as a minilab system. The minilabs contributed to the expansion of worldwide photographic market by making photos closer to consumers and amazingly shortening delivery time.
But not short enough.
The company concedes it was caught off guard by the surge in digital photography that shrank the market for traditional silver-halide photography services and products. Its profits plunged in recent years, to the point that company officials decided last November to restructure the company.
Konica Minolta will transfer its camera business to Sony, which will use some of the company's lens and mechanical technologies in its line of digital cameras. The company will withdraw from both the film and digital camera business effective March 31.
Company officials said they hoped to salvage the photo business by scaling it back, but concluded that profits are just drying up too quickly.
"For color film and color paper, while considering our customer needs, we will step-by-step reduce product lineup and cease our color film and color paper production by the end of fiscal year ending March 31, 2007," the company said.
Konica Minolta will shutter its minilab business later this year. Another firm, Noritsu Koki Co., Ltd., will provide maintenance and customer services, the company added.
