NPD market research says that digital camera sales will surpass expectations for 2006. Sales though November rose 24% compared to last year. Given that total units sales for this year should be double 2003, many industry observers thought that growth would begin to fall off.
Sony, which has struggles across many lines of business, gets little break because of the news. This and its affirmation that it will hit Playstation3 sales targets are an indication that the company maybe making a slow turn in the right direction. Kodak, Canon, and Nikon also benefit from the continued strength in digital camera sales.
Analysts say that sales growth could drop down to single digits in 2007, but they thought 2006 would be slow and were wrong.
Sony’s stock has gone from $37.50 in early October to its current level of $43. A little more good news and it could go higher.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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