Nikon announced today that it will be shutting down its digital camera factory in the Jiangsu province China, blaming the rise of smartphones for the demise of the compact digital camera market. The decision, made by Nikon’s board of directors at a meeting today, closes Nikon Imaging (China), a subsidiary of Nikon that was formed in 2002 in Wuxi City, Jiangsu, China. The factory has been responsible for manufacturing digital cameras and DSLR lenses, and it employed 2,285 workers as of last month.
Nikon said the decision to close the plant was due to smartphones eating away at its compact camera business.
“In recent years […] due to the rise of smartphones, the compact digital camera market has been shrinking rapidly, leading to a significant decrease in operating rate at [Nikon Imaging (China)] and creating a difficult business environment,” Nikon says.