The Emergence Of Smartphones
The emergence and popularity of smartphones has eliminated the need for some products; the device gives you the ability to surf the web, play games, take pictures, and utilize countless applications on top of making regular calls and texting. “Cellphones are [now] cloaked mobile-gaming devices that you always have in your pocket” and are eating into demand for “compact point and shoot [cameras]” according to an article in the Wall Street Journal. This technological innovation has been problematic for companies like Canon and Nintendo who have found themselves on the wrong side of the shift.
Nintendo’s operating loss increased to 30.55 billion Yen last quarter; a net loss of 7.45 billion Yen compared to their profit of 5.15 billion yen last year. Canon posted a 34% decrease in quarterly profits and has seen a decline in digital camera shipments to 70 million units this year from 121.8 million in 2010. These two companies need to revamp their products to appeal to a wider audience; perhaps they should look into making smartphones.
Source: The Wall Street Journal