I got a call from my broker last week regarding some Nikon stock  have. He pointed out that the price had declined 25%since I bought it in 2010 and urged me to dump it. "Everybody has an I Phone these days so the future of camera companies is like the future of land lines".

I replied lamely that I have a bag full of Nikon lenses and that Nikon also makes telescopes and other general optical products not impacted by I Phones. I'm thinking about it, tough.

Anyone care to offer prognostications or advice?

In general...

...  Just because you like a product, that doesn't mean that ...
     ---  The company is well managed & run,
     ---  The company's future prospects are bright,
     ---  Those products will be profitable.

...  The medium to high end photography marketplace is extremely competitive.  No one company
     can claim a vastly superior market share.  You can't mention "Nikon" without someone starting
     a religious war by bringing up "Canon".

...  Let's remember that Nikon is more than a camera company.

...  Yes, low end cameras have essentially been replaced by smartphones, and zillions of consumers
     find camera phones to have acceptable quality.

...  There is a trend that forces medium to high end cameras to become more & more complicated,
     which tends to shove aside the more casual consumer.

To me, it's a similar marketplace to PCs (including Macs) -- competition is fierce, profit margins are shrinking, and the low end is under attack by smart phones & tablets.  Would you buy stock in Dell right now/i]?

So, it doesn't surprise me that their value has declined 25%.  Do you think that's going to turn around?  If so, how?

I'd enjoy the cameras while you still can.  But as an investment, there are probably better companies to own & hold (for example, those companies making smart phones & tablets).

>>>>>  Tangent Alert  >>>>>
My first camera was a Nikon S2 Rangefinder, a camera that is about as old as I am.  Great 35mm camera with great glass.  I still got it, and it still works.  If you need a 35mm negative made, you could easily do worse than this "antique".  So, say you hold onto your Nikon digital camera -- 50 years from now, do you still expect it to be able to produce top quality images?
>>>>>  End Tangent  >>>>>