Samsung Electronics Decides Not to Sell Its Digital Cameras Anymore

Apr 06, 2017

Samsung Electronics’ digital cameras faded away into history. Due to changes in environment of camera markets, Samsung Electronics’ digital cameras that had existed for about 20 years since 1997 cannot be seen in markets anymore. However its Gear 360 camera, Smartphone camera and others have reborn as new product lines and will continue existence of Samsung Electronics’ cameras.
“We are not going to produce and sell digital cameras anymore.” said Samsung Electronics on the 5th.
‘Digital camera’ item was also eliminated from Samsung Electronics’ business report on sales of IM (IT and Mobile) field. Although digital cameras were included as major sales of IM field along with HHP, network systems, and computers until third quarter of last year, they disappeared due to reduction of sales. Existence of Samsung Electronics’ digital cameras ended with mirrorless camera called ‘NX 500’ that was released in March of 2015.
“We are not going to produce and sell digital cameras anymore.” said a representative for Samsung Electronics. “However we are not completely putting aside camera business but we are making a new category of new products.”
Reason why Samsung Electronics is stepping away from digital camera markets is due to changes in markets. Explosive growth of Smartphones negatively impacted Samsung Electronics that had been making positive performance in entry-level digital camera markets.

Image of Gear 360 <Image of Gear 360>

According to changes in markets, Samsung Electronics put out its first DSLR camera called ‘GX-1S’ that uses 2006 PENTAX interchangeable lenses to markets. However as quality of Smartphone cameras has improved quickly, consumers had to choose between DSLR and Smartphone as a tool to take pictures. Although Samsung Electronics put out mirrorless ‘NX’ series to markets as a next target and received positive reviews, it ended up being its last digital camera.
“Number of entry-level camera markets have reduced at a rapid rate and lost their competitive edge due to growth of Smartphones.” said a representative of an industry. “It seems that Samsung Electronics is stepping away from digital camera markets because even Canon and Nikon, who have more than 100 years of history in camera markets, are struggling in premium camera markets.”
Although Samsung Electronics has decided to stop producing and selling digital cameras, it has not completely given up on camera businesses. Starting with Gear 360 camera that was released in April of last year, it is changing its category with new products. It seems that Gear 360 camera, which was put out to markets along with explosive growth of VR markets, will create an ecosystem for VR (Virtual Reality) along with its Smartphones and Gear VR. Corresponding product was applied with Samsung Electronics’ optical technologies.
“Our camera business that started since 1997 is moving from digital cameras to new products such as Gear 360 cameras.” said a representative for Samsung Electronics. “We are not completely giving up on camera business but we are creating markets for new categories.”
Staff Reporter Jung, Youngil | jung01@etnews.com

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