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Olympus hangs $57 million loss on austerity, strong yen and declining compact camera market
Olympus is reporting a $56.7 million loss for its first quarter of 2012. While its coveted medical imaging arm remains profitable, its life-science and industrial unit suffered thanks to corporate belt-tightening. Unsurprisingly, its low-end compact camera market is shrinking, but sales of its OM-D E-M5 ILC increased by 50 percent, offsetting some of the losses and reducing operating losses from $89 million last quarter to $19 million in this one. Like many of its Japanese rivals, it's also found a strong yen has stifled its return to productivity, a trend that isn't likely to change soon.
Nikon makes $201 million quarterly profit, nearly 50 percent drop from last year, blames strong yen
Nikon's odd financial calendar means that the camera maker is announcing its first quarter results for 2013. The confusingly-dated documents show that it isn't having the best Spring / Summer, since while it pulled in a net profit of $201 million, that figure is down nearly 50 percent on the $392 million it made in the same period last year. It sold a record number of interchangeable-lens cameras, lenses and a good number of compact cameras, but that was offset against the high cost of the yen. Its other businesses, Precision Equipment and Instruments both suffered thanks to Government spending cuts, a "harsh business climate" and the now age-old problem of the high exchange rate. It's expecting the situation to remain the same in the next three months, with booming camera sales weight against losses in its other businesses -- with a projected profit of $143 million anticipated in Q3.
Taiwanese Apple suppliers may be forced to raise prices
While the modern global economy has allowed companies in far-flung parts of the world to get into manufacturing, one of the many issues they face is exchange rate fluctuations. Electronics manufacturers in Taiwan are currently feeling the pinch as the Taiwan dollar has climbed more than other currencies in the region, jumping 2.5 percent in the past month and 7.2 percent in the past year. Each percentage point of exchange rate increase translates to 0.5 percent of profit margin according to Wintek, which produces touch panels for many Apple devices. Suppliers like Wintek rarely manage to achieve the sort of enormous profit margins that Apple does when selling to the consumer, and losing 3 percent off the top is tough to swallow. As a result, Taiwan-based companies may have to look at increasing the prices charged to Apple and other customers. Apple's premium pricing to end customers means that it has some flexibility to absorb price increases from suppliers in the short term. That will, of course, hurt its profits, which it won't tolerate for very long. Given the competitive marketplace, Apple will be reluctant to increase prices, but if the exchange rate situation doesn't improve soon, we'll probably see some decontenting or a slow-down in the spec increases. Instead of seeing next-gen MacBooks and iPhones getting more memory or better cameras, they will probably hold steady. [Via Electronista]
From gaming teen to virtual entrepreneur: how to cover college tuition [update 1]
Despite devoting much of the past three years to hunting and mining, Ogulak Da Basher, or Mike, a 17 year-old from Durango, Colorado, rarely breaks a sweat. Ogulak is Mike's Project Entropia avatar who has earned more than $35,000 through hard work in the Entropia Universe, becoming captain of the "ck Coat Killers" hunting society, and creating a potentially lucrative new business model based on Ogulak's mastery of crafting weapon and mining attachments.The next step in this young virtual entrepreneur's budding career is to donate $12,000 to pay for parts of his siblings' college tuitions. Lovely story, right? But wait, before you go and sign up your future collegiate kin for Entropia accounts, know that MindArk's inspiring tales have a history of being manufactured. Think of Entropia like Poker, you might have fun playing, but chances are, you're spending dough, not making it.Update: added "Ogulak Da Basher" image.[Via Terpin Communications press release]
