Kodak shifts digital camera production
By Li Jian (China Daily)
Updated: 2006-08-03 10:28
Kodak's counterparts, including Canon and
Sony, have adopted more flexible strategies in the China market, enabling them
to launch new models more quickly than Kodak.
A recent survey conducted
by ZDC, a consumer market information centre, showed that 11 per cent of Chinese
consumers preferred Kodak's digital cameras, while more than double preferred
Canon and Sony. And Samsung and Nikkon are catching up.
Market analysts
said the transaction is similar to the one made by Lenovo and IBM. They expected
Kodak to shift more of its manufacturing capabilities to business
partners.
"In the IT industry, the good money does not come from
manufacturing, but from design and the technical solutions service business,"
said Michael Soon, an analyst with Shanghai-based Witech Consulting Co
Ltd.
"Kodak is following in IBM's footsteps to find the key to success in
the IT industry," said Soon.
Once the firm shifts its consumer digital
camera manufacturing, it may turn to its health products unit.
"Kodak is
considering selling or shifting its health business in China," said
Tian.
In 2004, Kodak launched a health imaging technology and innovation
centre in Shanghai, its second in the world. The 2,500-square-metre centre
developed a series of digital-based health imaging products, such as a wireless
technology that will enable patients to access their health records from
anywhere.
"For a long time, Kodak has spent lots of money in the digital
business to make up for a decline in demand for its traditional film products.
But its sluggish market performance shows the transformation is more difficult
than expected," said Qin Liang, an analyst with Haitian Consulting in
Shanghai.
Last year, Kodak reduced its manufacturing capacity for
consumer film products at its plant in Xiamen, East China's Fujian
Province.
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