Samsung Begins Withdrawal from Camera & Camcorder Business

Samsung’s mobile division is already in disarray, having lost tremendous momentum and sales to Apple. Between sleazy marketing and me too’ing Apple at every turn, finally their lack of ambition is catching up to them. Smartphone sales have been declining for the past two years with profits down nearly 60% which was finally enough to have the company replace JK Shin, who’s been the head of mobile since 2009.

Now it looks like the company is going to slowly withdraw from the camera and camcorder business.

In the UK, we have seen a gradual and sustained decline in demand for standalone digital cameras and camcorders and related accessories

For this reason, we have taken the decision to phase out the sales and marketing of these products.

As it stands, the news is only relevant for the UK but many industry insiders believe that other European countries will soon see a retreat from Samsung. The news isn’t all that surprising, given the decline of camera and camcorder sales as mobile units cannibalize them. For many in the camera business, high-end and pro-sumer devices have been a point of saving grace and even in that market, Samsung has stood little chance with Sony dominating old entrenched brands like Canon and Nikon by becoming the number 1 mirrorless camera maker in the world, leaving little for Samsung who only made mid-tier products.

I mention this because every time Sony is seen withdrawing from a market or simplifying a product line, there is this sense of rush to judgment and negative press around it. That it’s a sign that the Sony of old is gone and what remains from it is simply crumbling. It’s just ironic that Samsung, the company that is most responsible for taking marketshare away from Sony in televisions and mobile is now facing similar obstacles yet nobody is flipping out by it.

Fun fact, Samsung calls their mirrorless camera line the NX. Does that sound familiar at all?

It also goes to point out that while painful for Sony, the transformation that’s taking place, though far slower than any of us would have liked, is a necessary one. If Sony is be competitive with the likes of Samsung, Apple, and ______ (insert company they’re competing with), they need to be more nimble and this means fewer, but more focused products. One such way is to forget legacy and instead focus on paving the future.

Pride won’t bring money to the bank. In Samsung’s case, neither does being a filthy copy cat.