Smartphones Causing a Camera Crisis

The increasing photographic capabilities of smartphones have caused a crisis for traditional camera makers. According to recent figures, sales of entry-level cameras in the U.S. in 2011 at 2 million units fell 17% compared to 2010. Compare this to the 95 million smartphones sold in the same period. In 2011, U.S. consumers took 27% of their photos using smartphones, surging from 17% just one year before. Camera makers clearly have their backs to the wall.

“All manufacturers, including Samsung, need to focus on the value proposition of a camera and what differentiates it versus a smartphone,” Reid Sullivan, a senior vice president of Samsung, said in an interview.

Camera makers are countering the threat with innovative features in their cameras. Sony (NYSE:SNE) has introduced 3D photograph and easy photography even in extreme conditions, such as underwater. Canon’s (NYSE:CAJ) new Powershot G1XZ will keep faces of fidgety and constantly moving children in constant focus. Samsung’s new camera DV300F will send pics directly to a computer via wireless and also upload to SNS like FaceBook and YouTube.

Here’s how camera and smartphone stocks are reacting to the news:

Sony Corporation (NYSE:SNE): SNE shares recently traded at $17.47,. They have traded in a 52-week range of $16.16 to $36.97. Volume today was 0 shares versus a 3-month average volume of 1,281,710 shares. The company’s trailing earnings are $-4.65 per share.

Canon Inc. (NYSE:CAJ): CAJ shares recently traded at $43.55,. They have traded in a 52-week range of $41.70 to $51.52. Volume today was 500 shares versus a 3-month average volume of 234,516 shares. The company’s trailing P/E is 16.99, while trailing earnings are $2.56 per share.

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $421.73,. They have traded in a 52-week range of $310.50 to $427.75. Volume today was 104,559 shares versus a 3-month average volume of 14,694,300 shares. The company’s trailing P/E is 15.24, while trailing earnings are $27.68 per share.

Research In Motion Limited (NASDAQ:RIMM): RIMM shares recently traded at $15.51,. They have traded in a 52-week range of $12.45 to $70.54. Volume today was 59,855 shares versus a 3-month average volume of 21,721,200 shares. The company’s trailing P/E is 3.65, while trailing earnings are $4.25 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $622.46,. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 14,129 shares versus a 3-month average volume of 3,038,970 shares. The company’s trailing P/E is 21.22, while trailing earnings are $29.34 per share.

Microsoft Corporation (NASDAQ:MSFT): MSFT shares recently traded at $27.74,. They have traded in a 52-week range of $23.65 to $29.46. Volume today was 134,884 shares versus a 3-month average volume of 52,095,500 shares. The company’s trailing P/E is 10.08, while trailing earnings are $2.75 per share.

Nokia Corporation (NYSE:NOK): NOK shares recently traded at $5.23,. They have traded in a 52-week range of $4.46 to $11.75. Volume today was 1,727,593 shares versus a 3-month average volume of 29,626,000 shares. The company’s trailing P/E is 22.84, while trailing earnings are $0.23 per share.

To contact the reporter on this story: Lindsey Grossman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com