The Japanese camera maker, Olympus, has reportedly announced to sell-off it’s camera business entirely to Japan Industrial Partners (JIP) as hinted once by its CEO in 2019. The company has decided to sell off its imaging division to JIP, the same company which had bought Sony’s VAIO PC business in 2014. In an official statement in 2019, the company had admitted that the camera market is seeing a shrink due to increasing market share of smartphone business.
“We had implemented measures to cope with the extremely severe digital camera market, due to, amongst others, rapid market shrink caused by the evolution of smartphones,” read the statement from the company back then in 2019.
The company seems to have failed even after applying various measures like restructuring, re-strategising, etc. to leverage its market share in the camera business. It is reported that upon seeing nothing working in favour, the company has finally decided to wrap-up it’s camera business this year. The company has reportedly incurred losses for the three consecutive fiscal years and was facing challenges to even meet its operational cost.
Today the Olympus Imaging Business has signed a memorandum of understanding (MOU) with Japan Industrial Partners, Inc. (JIP). For the full statement, please visit: https://t.co/1NyVHh9no8
— Olympus (@getolympus) June 24, 2020
In fact, in 2019, the company CEO, Yasuo Takeuchi, had hinted that the company may wrap up it’s camera division in future. However, his view was taken with a pinch of salt as Olympus is a well established brand in the camera division and his speculations were watered down gradually.
The deal with JIP to sell off the imaging division including the OM-D and Zuika brands may finally get inked in September 2020. The financial worth of this deal is yet to be known. The news broke after the company released a Memorandum of Understanding (MoU) sharing the details of the deal.