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Nikon stock plummets after cutting forecast

Nikon has lowered its annual sales forecast due to lower demand from the European and Chinese markets.

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Nikon has lowered its annual sales forecast due to lower demand from the European and Chinese markets.

(Credit: CNET Australia)

As reported by Bloomberg, the camera maker cut its sales targets for SLRs and lenses. The forecast now stands at 7 million SLR units (down from 7.1 million) and 9.8 million lenses (down from 10 million).

While the revisions may not look huge on paper, the announcement caused Nikon's stock price to drop 19 per cent at the close of trading that day.

Chief financial officer Junichi Itoh said that demand from the European market is slowing, while China was "worse than expected". "Tough competition for entry-level single-lens-reflex models has led to a large price decline since around mid-November," he said in a statement.

The company's net income now looks like it will sit at 38 billion yen (AU$394 million) for the year ending 31 March.

Nikon is not the only camera manufacturer to cut its sales forecast, as Canon also did the same towards the end of 2012, causing ripples throughout the photography world.