Nokia Corporation (ADR) (NOK), Sony Corporation (ADR) (SNE), Canon Inc. (ADR) (CAJ): The Death of the Point-and-Shoot

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In Canon Inc. (ADR) (NYSE:CAJ)’s case, the firm’s popular interchangeable lens cameras should become the unquestioned center-piece of the company. Already, Canon seems to be moving in that direction as Canon strategist Mitsuo Matsudaira said that Canon will focus on finding ways to encourage consumers to upgrade on a more regular basis. Matsudaira hopes to shorten the replacement cycle by finding ways to give these cameras “higher value,” possibly by lowering the price.

This high-end strategy may seem risky, but I don’t think camera companies have a choice.

Bottom line

Point-and-shoot cameras are dead. Firms like Canon Inc. (ADR) (NYSE:CAJ) and Sony Corporation (ADR) (NYSE:SNE) shouldn’t waste money trying to compete in the industry. They should instead focus on their competitive advantages – things that separate their products from smartphones.

Still, in the meantime, the compact camera decline will have a negative effect on camera companies’ stock prices. At least in the near term, camera stocks are a sell.

This industry is shifting. Don’t miss it.

This article was written by Randy Holcombe and edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned.The Motley Fool has no position in any of the stocks mentioned.

The article The Death of the Point-and-Shoot originally appeared on Fool.com.

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