Sony Expects Significant Decrease of Digital Camera Sales Due the Earthquake Damage at Kumamoto

Months after the devastating earthquakes that struck Japan, new reports are still coming to light on how the quakes have affected Sony. Besides the financial cost required to rebuild the factory, the inability for Sony to output sensors from its damaged facility has meant lost business to companies it supplies like Apple and Samsung. Client sales aside, Sony’s own internal divisions are also being affected by the quake.

Sony estimated the impact from the quake on its image sensor and digital camera operations would total 105 billion yen this business year.
Significant decreases in sales of digital cameras and broadcast- and professional-use products, including sales decrease resulting from a delay in the supply of components due to 2016 Kumamoto earthquake.
In addition, Sony decided to terminate the development and manufacturing of high-functionality camera modules for external sale, the mass production of which was being prepared at the Kumamoto Technology Center, as a result of a reconsideration of the strategy of this business from a long-term perspective. Approximately 30 billion yen in expense is expected to be incurred due to this termination.

Sony has been a company that’s seen its recovery efforts hampered over the years due to different earthquakes, tsunamis, and digital threats. I can’t help but wonder how much better off Sony would be if they had a bit of luck on their end.