Skip to content

Olympus sells its camera business to Japan Industrial Partners

Olympus sells camera business to JIp citing dwindling profits
Jordan Major

Olympus continued to deny persistent rumors that it planned to exit the camera business. However, on June 24 the company confirmed that it will sell its camera business to Japan Industrial Partners (JIP). JIP is the same firm that acquired Sony’s VAIO PC division.

The company now plans to focus most investments on its bigger business of supplying industrial and medical imaging equipment. Olympus explained that it took all the necessary measures trying to cope with the severe digital camera market. Despite all the efforts, the company said:

“We recorded operating losses for three consecutive fiscal years up to the term ended in March 2020.”

It did not help that the company combated a $1.7 billion accounting scandal in 2013 as reported by Engadget.com. For now, it is unclear what will happen to the company’s mirrorless cameras that include the flagship O-MD E-M1 Mark III.

JIP plans to streamline the new business as it did with VAIO taking all necessary measures to make it more efficient, compact, and agile. Moreover, it will sell the existing camera models and replace them with new ones, according to Olympus. Thus, it would expectedly support the current Olympus owners.

In 2019, Olympus CEO Yasuo Takeuchi mentioned that a sale of the consumer camera division was possible. But, the company painstakingly tried to take that comment back at some point telling the users to count on them.

Competition

Analysts say that the company lacked innovation on its O-MD E-M1 III flagship camera compared to other manufacturers. It is always a significant indication that a company wants to shun a certain product when it stops creating new product technology.

This sale has some implications for the global camera market. Panasonic and Olympus are the only manufacturers that support the Micro Four Thirds format. That is a sector that lags way behind APS-C and full-frame systems.

The bigger sensors are categorized as better while using the camera in low light. In these conditions, the sensors produce soft “bokeh” backgrounds. These capabilities distinguish Sony’s products from the increasingly excellent and enhanced smartphone cameras. 

Olympus still uses Micro Four Thirds for its interchangeable lens cameras. But, Panasonic has now designed its full-frame mirrorless cameras that have attracted massive demand from the video market.

The new Panasonic products give the company options subject to what happens to Olympus. Following all the legal procedures, the Olympus sale is expected to conclude by September 3, 2020.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.