Camera is Samsung's next cash-cow

Usain Bolt, a Jamaican sprinter who is the fastest person in the world, poses with Samsung Electronics’ latest premium mirrorless camera, the NX300. Courtesy of Samsung

By Kim Yoo-chul

Last year was the hottest for Samsung’s camera business.

It became Korea’s top vendor for mirrorless cameras by surpassing its long-time rival Japan’s Sony, which is still a big name in the camera industry despite its recent faltering electronics business.

During the last three months of 2012, Samsung sold the most mirrorless cameras in Korea with a share of 39.0 percent, followed by Sony with 38.3 percent, according to data from Samsung, Sunday.

“Over the past few years, we’ve been very consistent in expanding product lineups and shifting away from low-end compact cameras as a strategy to put more focus on the lucrative mirrorless cameras. This strategy was correct,” said Suk Won-ki, a company spokesman.

The numbers tell it all. During the July-September period of last year, Sony dominated the local mirrorless camera market with a share of 46.5 percent, followed by Samsung with 33.0 percent. Samsung was behind the Tokyo-based outfit in the second quarter of 2012 as well.

Samsung adopted a similar strategy when it decided to move from its own smartphone platforms to concentrate on Google Android software a few years ago, according to Samsung officials and market analysts.

“Sales of conventional compact cameras declined as smartphones and tablets became more popular. More are now buying digital single lens (DSLR) cameras and mirrorless interchangeable lens cameras,” said the spokesman.

“We are better positioned to effectively grow that business, as we have qualified technologies, undisputable leverage in manufacturing and solid corporate brand awareness.”

Mirrorless camera refers to the cameras that are not fitted with a reflex mirror such as those used in single lens (SLRs) to bounce an image through the lens to a viewfinder.

In most cases, mirrorless camera bodies are as thin as the compact cameras. The redesigned camera sensor is then paired with an interchangeable lens system, allowing vendors to deploy higher quality glass lenses.

Samsung’s top management is counting on the camera business as one of its next cash-cows. It is the world’s top manufacturer of mobile phones and TVs, as well as the largest supplier of memory chips and flat-screens.

Samsung had long been an underdog in the cameras industry. It started the business much later than Japan’s “camera trio” _ Sony, Canon and Nikon, which have for years dominated the market.

“We are a challenger. But we want to become a game changer,” said Suk, stressing Samsung’s less reliance on point-and-shoot sales by shifting to mirrorless cameras which offers it the chance to further explore the market.

Samsung aims to become the top mirrorless camera vendor, globally by 2015 with the goal of controlling over 25 percent of the global share. It has already converted the compact manufacturing lines at its main camera plant in China to produce more mirrorless models.

Its current mirrorless camera has several smart features.

A Samsung Galaxy smartphone can share pictures with a Samsung smart TV, while its mirrorless camera is enabled to use the smartphone’s wireless connectivity.

“Such product lineups help the firm secure solid revenue sources. It has a customer base that ‘s large enough to lead changes, too,” said a Samsung official.

With regard to the strong sales of its latest NX300 mirrorless model, the spokesman said, “We are confident the model will help Samsung rewrite the history of the camera business.”

The NX300 was launched in March, here, and so far over 10,000 units have been sold.

“We expect the total demand for mirrorless cameras in Korea to reach 300,000 units. We will be aggressive in marketing and be consistent in diversifying models,” said Suk.

The NX300 is Samsung’s ace in the hole. It has an entirely-new hybrid auto-focus system and a very sleek surface design. It has received favorable reviews from influential overseas tech sites and publications.

“It’s no shock to see Samsung top Sony in mirrorless cameras, globally. Samsung is now the top smartphone supplier,” said Kim Il-tae, a senior fund manager at Taurus Investment, a leading local fund manager.

“Like what Samsung is doing now in smartphones, it can make mirrorless cameras must-have items for people around the world.”