Olympus global has announced that they are selling their camera business to the Japan Industrial Partner (JIP). Olympus started as a camera and lenses manufacturing company which later focused its business in production of precision instruments and various of machinery for medical and scientific purposes. This was due to the emergence of smartphones which lead to reduction in camera sales. The medical systems generate 80% of their revenue worldwide.
Olympus has their digital camera business globally in locations including India, Australia, China and, Hong Kong. The digital camera business accounts for around 6% of their revenue. JIP had already aquired the Sony Viao Computers in 2014 (the deal was worth 40-50 billion Yen) and now probably looking forward to take up Olympus’s OM-D and Zuiko which are for cameras and lenses respectively.
One of the reasons as mentioned by Olympus for selling the camera business is that, they are incurring high losses since the past 3 fiscal years. The last financial year which ended in March 2020 did not show any improvement in sales. They have tried to bring about various technological advancements and new strategies in the business but failed to cope up with the high demanding digital market.
The financial details of the business have not yet been announced by the company but they have passed and MoU (memorandum of understanding) which confirms that the deal is on.
Olympus says that they expect the digital camera business to become more advanced, productive and efficient under Japan Industrial Partners (JIP). They also mentioned that the company looks forward to continue providing highly reliable and high quality products and also provide support to the imaging solution products which they have been distributing.
Olympus got into the camera business in 1936 and are quitting the business after 84 years of innovative and committed customer service. Their latest product was OM-D-E-Mark III mirrorless camera which was the successor to the OM-D-E Mark II. They had a special feature called starry sky which would help you to click good pictures of celestial objects.