In order to cope with the latest demand of digital cameras, Fujifilm Holdings Corporation (FUJIY - Free Report) has started operations of its new optical lens factory, FUJIFILM Optics Philippines Inc..
In the modern world, electronic products such as mobile phones, digital cameras, broadcasting digital cameras, surveillance cameras and projectors have a high demand; and with this, the demand for optical lenses also rises parallelly. With the new facility, Fujifilm is trying to tap the growth potential of the lens industry.
The construction of the facility started in November last year, with the initial production starting in May this year. The total investment in the facility is estimated at ¥2.3 billion. Now the facility has started production in its full capacity.
In fiscal 2013, the sales of camera phone lenses increased, but projector lenses suffered a decline, diminishing the overall optical devices sales. For the fiscal, Optical Devices sales decreased 2.1% year over year to ¥51.2 billion (US$617.0 million). However, for the fiscal fourth quarter of 2013, sales increased 16.3% year over year to ¥14.3 billion (US$155.1 million).
Fujifilm has been attempting to gain a market share in the digital camera business, after the downfall of traditional photo imaging business. To increase its market share the company has been launching several products in various segments.
Last month, Fujifilm launched the FUJINON XF27mmF2.8 lens for the Fujifilm compact system cameras. The lens reduces the ghosting effects in the images through its HT-EBC Coating. The lens can be used in a wide range of scenes like landscapes, snapshots and portraits.
Fujifilm currently carries a Zacks Rank #1 (Strong Buy). Some of the companies that compete with Fujifilm in diverse operations are Alliance Fiber Optic Products Inc. , carrying a Zacks Rank #1 (Strong Buy), and Cohu, Inc. (COHU - Free Report) and Ciena Corporation (CIEN - Free Report) both carrying a Zacks Rank #2 (Buy).